M&A Advisor Tip – How to Answer Questions

As you start the sale process, you may be holding offsite meetings and fielding confidential phone calls. Even a subtle shift in activity can cause savvy employees to wonder, ‘What’s up?’.

Be prepared to answer questions about who these guests touring your business are, or why you’re requesting additional information from your team.

You might tell people you’re getting quotes from a new insurance consultant or lender or considering expansion plans with a potential business partner. Or be frank without telling the full story: You’re laying the groundwork for an exit plan to secure the long-term future of your business.

If someone confronts you about a sale, you can always answer that at your stage in life, it is always a good idea to think about what’s best for the future. One owner offered this answer: “Everything’s for sale for the right price! Did you want to make an offer?”

What our clients are saying...

“New Image Coatings, owners of Seal-Once, retained Business Transition Strategies in April of 2015 to locate a strategic buyer for the company. This was successfully completed during April of 2016 when we were acquired by UC Coatings of Buffalo, New York. Working at our side throughout this process were John Howe director, and Ken Schaefer, deputy director, of Business Transition Strategies. From the start of the project, where the information memorandum was developed, to helping us create the management presentation to acquirers, through negotiating the letter of intent and then the definitive agreement, they were there with me and our professional team every step of the way. It took nearly one year to the day to complete the project, but they never lost focus on my best interests and helped me keep my eye on business. This sale was very complex. It included transfer of trade secrets from the product developer, …as well as the transfer of a manufacturing and licensing agreement we had with the core compound producer… John and Ken marketed the company to a range of strategic acquirers, including a number of private equity groups and their platform companies, which ultimately resulted in an agreement with United Coatings… BTS’s level of expertise in the process and close attention to detail enabled us to successfully navigate the deal. I would recommend John Howe and Ken Schaefer to any company owner considering selling.”

- Hank Croteau

New Image Coatings