Sell-Side M&A Advisory

Sell-Side M&A Advisory

We have been there, as principals selling our own companies and as advisors helping others. Most people think it is all about price. In a way it is, but “the number” is not everything. Deal structure, incentives, terms, likelihood to close all matter. Sorting through that requires experience. Making the transaction fit the objectives you are trying to achieve is what is important. If price was the only thing, it would be easy.

For many business owners the sales process is new and uncertain. You likely will not hear this often but the number one driver of value is your confidence – as you talk about the business, as you connect with buyers. There will always be rules of thumb and ranges on multiples and earnings add-backs. Those only work if you are confident in what you are selling and confident that you have an advisory team that will represent you and your interests well.

The active, direct process for selling a business is relatively similar across industries and across time. Our invitation to you is to begin that process early. Even before you have a go-to-market date in mind. That end-to-end process creates a lot of value. Starting early, positioning your operations to create results, not just value, working on the depth of your leadership team. Those aspects of your business can be worked months or even years before you think about contacting an advisor. We are here to help even then — as you position your business as a best-in-class operation with a rock solid business model.

Last, a sell side engagement can create a lot of questions for the owners and managers of the business. It may be a straight cash sale or it may have terms such as earn-outs or seller paper. An opportunity may come up to take some off the table but ride with a growth plan that is attractive and lucrative. Then there are always indemnities and remedies, tax effects, and other considerations that part of every deal no matter its other terms. Sorting through that effectively is the way a successful transaction is completed. We are here to help, to give you our perspective and to help you select the best advisors to deal with the specialized details.

Let us know what you are thinking about your business. Whether you are ready to sell now or want a perspective on how to get your business to the right place to maximize value, we want to talk.

Connect with us about selling your business.