Getting Started on the Future
Recently we met with members of a CEO peer group to discuss transition strategies for them and their companies. While the group included people in differing life stages, all shared the same concern: how long do I hold onto the business and when should I begin planning for the ‘next phase’. The second question is […]
Assembling the Team
When contemplating or preparing for a transaction it is important that an experienced team is assembled. While the M&A advisor handles preparation, presentation, marketing, negotiation and the other myriad phases involved with the transaction, other expertise is needed. It is critical that the legal team be led by an experienced transactional attorney. Larger firms may […]
Working Capital in a Transaction
Adequate working capital is generally assumed to be part of the transaction in lower mid-market transactions. This can be a source of disagreement and misunderstanding. From a transactional point of view, working capital usually includes inventory plus accounts receivable less accounts payable. Cash is rarely included and short term debt, such as lines of credit […]
The Value of an Intermediary
We recently completed a transaction of a company that was purchased as a bolt-on acquisition for a larger company, backed by a partnership of private equity groups. We started this project a year and a day before the closing. When we went to market we had a number of interested acquirers – all were backed […]
Answering Challenges Can be Good for Business
There are opportunities in every challenge presented to a business. Those who find constructive ways to deal with them usually succeed and in the process, enhance their position when it comes time for a sale. We specialize in selling companies in the lower mid-market. These are the businesses that are too big to be seen […]
Envisioning Life After Your Sale
You may expect a newsletter from M&A advisors to encourage you to sell your business. After all, that is how we make most of our money. Having sold two small manufacturing companies of my own, I know the feeling that follows the sale can be incredibly liberating. Whether you are selling for a liquidity event, […]
Why Consider a Buy Side Transaction?
There are some truisms in business, “Everyone in the organization needs to be rowing in the same direction” or “The organization is only as strong as its weakest link”. There is also a truism when it comes to growth, “It is much faster to grow through acquisition than organically one customer at a time”. Why would you want to risk […]
P+E+S=EF, a winning formula for Michael Coles
Michael Coles, founder of The Great American Cookie Company, advances this formula when he discusses what he considers critical to establishing customer loyalty. Here’s the translation: Product plus Experience plus Service equals the Experience Factor. The experience factor is the way a customer feels about a business, and in part determines whether the customer returns or […]
Overcoming Fear of Public Speaking
A survey has shown that there is one thing people fear more than getting a tooth filled at the dentist: public speaking. People in this boat find that their mind races to provide words, but their mouth won’t deliver them. They start to shake. Their glasses fog up. There’s a phrase to describe it: glossophobia, […]
Staying Current to Help Clients
Twice a year we attend a deal expo with private equity groups and strategic buyers. It is part of a conference presented by The M&A Source, a professional association of intermediaries who work to bring mid-market buyers and sellers together. I have the honor of being chairman this year. Why mention this? It is part of […]