Mergers and Acquisitions
A survey by M&A Today discovered that 85% of entrepreneurs have no exit strategy, yet 75% have their net worth tied up in their business. For many business owners, mergers and acquisitions are uncharted territory, however, if you’re interested in an exit at some point in the future, it is critical that you keep this intention conscious, and begin to integrate it within your business goals.
For example, if your planning a sale and decide to research potential purchasers as a business goal, your research may indicate that in order to make yourself attractive to a large player in your industry, you should look at buying companies – competitors, suppliers or customers – to increase revenue and take advantage of economies of scale in your cost structure to increase earnings. This conclusion may in turn set up an important new business strategy and a multi-year plan leading to a more fruitful exit.
Other specialized exit strategies that require some forward thinking in order to execute are selling your business to existing management, an initial public offering, recapitalizations, ownership transition plans and succession plans.
Through my experience in merchant banking and entrepreneurial ventures, I have significant expertise in the middle market defined as private companies with values ranging between $5 million and $500 million. If you’re planning to grow by acquisition, execute a succession plan, or sell your business within the next five years, I recommend you seek advice now.
I can help plan the process early, discover any issues that might impact your valuation, recommend ways to further your pricing and cultural legacy objectives, and ensure that you begin to groom your company for presentation in the best light possible.
To learn more on how to prepare your business for sale, merger or acquisition, please contact me.