Read any “how to” manual on mergers and acquisitions and you’ll find checklist after checklist about how to prepare to buy a business, how to sell a business, how to value a business, how to do due diligence, how to get the best price, how to reduce the price, how to find fraud, how to put lipstick on a pig. Many intermediaries not only know the checklists cold but can recite them from memory, and probably have written three books full of checklists. But the most important checklist that every successful intermediary should know is the shortest.
GOOD NEWS for owners of mid-sized companies who thought their window of opportunity to sell had closed for good–the combination of available, competitive debt and equity financing, an interested and large number of buyers and a seemingly resurgent economy is resulting in crowded auctions and higher prices.
Ed Peters, keynote speaker at the June 22nd FOCUS Workshop, “MAXIMIZING WEALTH: Liquidity Strategies for Business Owners,” presented a fascinating personal account of how he sold DataDirect Technologies for $88 million. According to Washington Business Journal, ”After tackling a startup venture, then leaving the business for a time, Ed Peters returned with a bang to… Read more »
Deal killers. They come in all shapes, sizes and varieties with different reasons, justifications and rationalizations. They can emanate from the buyer, the seller or any number of third parties — lenders, investors, key customers or suppliers, professional advisors — or all of the above. In the article below, Andrew J. Sherman, Esq., presents a… Read more »
How do you account for the ultimate success or failure of mergers and acquisitions? Many factors are critical: you need to buy the right company for the right price at the right time. Even with all of the correct elements in place upfront, a corporate marriage “made in heaven” can turn into the “honeymoon from… Read more »
For many, if not most entrepreneurs, life is hectic, demanding and fast paced. Indeed, for most executives, the inbox is always full, leaving very little time for personal matters such as estate planning. Yet, if the executive fails to take the time to plan for disability or death and luck runs against him, this same… Read more »
A privately held services company shouldn’t overlook the possibility of selling or merging with a larger player to obtain liquidity and maximize shareholder value.
Even in difficult economic times, it’s still possible to find precisely the right buyer for your company, according to George M. Shea, a FOCUS Partner, who shares an instructive sales experience in a new article, “The Biggest Sale of His Life: How One Small Business Owner Persevered and Sold His Company.”
Achieving a successful exit from a company requires both careful preparation and extensive consideration of the many alternatives. Developing a strategy to maximize the value and avoid the pitfalls is critical. In the article below, “Finding an Exit: Options and Their Implications,” Alain Chetrit shares the expertise he gained as CEO of First Regional Telecom… Read more »
Successful companies spend a great deal of time and effort developing and nurturing customer and key supplier relationships. Unfortunately, many of these same companies don’t take the same approach to developing positive relationships with their bankers/lenders. Building a strong relationship with a lender is a critical element in the success of any company. Lenders, like… Read more »
Strategic planning services assist clients in developing a detailed strategic direction for the enterprise over a three to five year period. A strategic plan typically begins with an assessment of the client’s external situation. This assessment includes a market assessment analysis, a competitive evaluation, a technology assessment, a supplier market assessment, and a look at… Read more »