Growth Methods Used by Buyers
We often hear from founders who feel they have hit the ceiling with what they can do with their companies. They are burned out. Buyer groups in the market see this as an opportunity, and often use one of two strategies when planning an acquisition. One involves bolting together several smaller companies into a larger […]
Advisor Tip: Don’t lose your focus
Your business is on the market and you’re looking forward to that glorious day when you can let go of the pressure and responsibilities of ownership. But don’t let those future plans distract you from what’s going on today. It’s critical that you keep running your business as usual. From making sales calls to developing […]
Changes by owners helped a sale
Owners considering selling can look at the experience of a N.H. company for ideas of what to do to increase their chances for a good transition. Globe Manufacturing, a 4th generation family-owned business based in Pittsfield, is a great example. With sales at the time of $110 million, the company was sold for $215 million […]
M&A Advisor Tip: Earnouts Can Break a Deadlock
Earnouts can be used to address a perception of risk faced by a buyer. They also are used to bridge a valuation gap between a buyer and a seller. It’s a compromise, of sorts, to break a purchase-price deadlock when the seller wants more than the buyer is willing to pay. In an earnout, a […]
Dealing with risks in a company sale
The passing last week of Harvard Business School professor Clayton Christensen – famous for his theory of business disruption – is a good time to consider business risk. Specifically, what are the risks faced by your business during a transition in ownership. For background, A visit to the Christensen Institute website finds this definition of […]
Use the Threat to Better Prepare
Today there is a lot of uncertainty about the future of business. There are things you can do to prepare for an eventual sale of your company – especially now. Many business owners are really hurt by shutdowns and reduced business. In this case, owners are wondering if they can survive. Others are busier than […]
Don’t Let the Pandemic Sideline Your Dreams
After the Great Recession we found a lot of owners delaying selling so they could focus on rebuilding and growing profitability. As we emerge from the Covid 19 shut downs, some may be fearing “oh no, I am stuck in the saddle again.” We think there is reason to look at the horizon more positively. […]
Questions That Owners Consider
We have had many conversations with business owners in the lower mid-market who are unsure about the future and wonder whether they should sell or hold. I found a page in my journal from earlier this year listing three things we should make sure owners think about. What matters most to you? Is it the […]
View Your Business from a Buyer’s Perspective
The more your business revolves around you, the more risk buyers see. “If you can’t take a vacation without either checking in once or twice a day or your business gets derailed,” says Dave Clough of mPower Advisors, “then your business is not ready for an ownership transition.” The less the owner has to be […]
Deal Problems to Avoid
It is common for owners heading into a sales process to ask about the chances of success. The question reveals the natural nervousness everyone feels when we head down an uncertain path. We have a great track record once a deal gets to letter of intent because we stay on top of details and are […]