5 Deal Points from the Trenches

I’ve been an M&A advisor for many years. Today I work with clients of Business Transition Strategies who are implementing Growth Through Acquisition strategies. Here are a few observations from working on a wide variety of projects.

  • Transactions should not be adversarial. It’s not about winning or losing. Both parties should win. Both parties need to be satisfied with the transaction.
  • No deal is perfect for everyone.
  • Both parties need to appreciate that the business will be different post close. The risk currently for the seller will be different for the buyer.
  • The seller needs to understand that the buyer in most instances will not benefit from the same net cash flow because the buyer has to service the debt used to purchase the business.
  • The purchase price needs to reflect the ability to repay any notes and still earn a decent profit.

What our clients are saying...

“Regarding our working relationship with Business Transition Strategies. After 32 years of continuous growth we hit 2009 & 2010 and like many companies we went flat and in 2010 had our first loss. At this point we knew we had to make changes if we where to succeed in this new economic environment. Business Transition Strategies (BTS), particularly John Howe and Ken Schaefer, were brought on as consultants. The BTS team came in, evaluated everything in a professional and thankfully non-threatening manner. They interacted with all employees and our professional partners. Once this was done they presented their findings to the executive group and gave very specific suggestions for improvements. This done and a plan in place, John & Ken continued to help us move forward and implement changes and make adjustments where needed. I am happy to say we are back to being a growing and profitable business and I believe BTS played a big part in making this happen. I would recommend to anyone that they include BTS as part of their business plans for the future.”

- Christina

Advisory Client