Business owners find their motivation in varied things. Commercialize a pioneering methodology. Be one’s own boss. Prove naysayers wrong. Provide a great place for people to work.
While every entrepreneur has his or her unique set of goals, virtually all share one in common — to one day sell for a boatload.
How much? Well, more is better. And so the question every business owner asks is: “What can I do today to maximize the eventual sale price of my business?”
We’ve been reporting that premiums are now being paid for businesses that have managed to post decent earnings during the recession. One key reason is there are many more buyers than sellers right now. Lots of buyers fighting to win the few deals available means higher prices.
It’s a sellers market.
In a blog post dated April 30, 2010 we reported that premiums are now being paid for companies that have been able to post solid earnings during this recession. Companies that would have topped out at five, six or seven times EBITDA three years ago are going for seven, even eight times today.
Cash is king, but owning a business can have some pretty nice perquisites. So what does a business owner do when he or she really wants to take serious chips off the table but does not want to give up ownership or management?
Need to buy out a shareholder but don’t want to put up your own money?
Need to take some chips off the table but don’t want to sell out?
Reduce your risk and gain some experienced, well-capitalized and well-connected partners?
Consider leveraged recapitalization.
For owners of large and midsize companies, need for liquidity does not have to be an all-or-nothing decision. It really isn’t like the famous song by The Clash:
“Should I stay or should I go now? If I go it could be trouble. If I stay it could be double.”
When business owner(s) need or want to take big money home, they have options.
Selling a business is a sales process. The business sale price ultimately received for a business is greatly impacted by HOW the business is sold. Maximum business sale price is garnered through appropriate preparation of the offering documents (packaging); savvy execution of the proven “quiet auction” process; and deft negotiation and orchestration of the process by an experienced and talented dealmaker.
When your mission is to sell a business for absolute maximum sale price, selling a business is a sales process. The business sale price ultimately received is greatly impacted by HOW the business is sold. That is, when the mission is to sell a business, the maximum business sale price is garnered through appropriate preparation of the offering documents (packaging); savvy execution of the proven “quiet auction” process; and deft negotiation and orchestration of the process by an experienced and talented dealmaker.
Thousands of sources of equity capital in the U.S. and around the world are willing and able to pay top dollar for great companies, leave the tenured management in place, provide meaningful ownership to the manager or management team that remains, and mentor and support the new owner-managers in continuing to grow the business. This is the type of transaction Acquisition Advisors specializes in and is proud to bring about.
Acquisition Advisors talks about win-win transactions. That is, business purchase/sale transactions that result in a “win” for the owner-seller, buyer, employees and community. By “community,” we mean where the company operates.
When the right buyer is found, the business has its greatest opportunity to thrive. This, of course, is good for the community as it continues to employ, provide livelihoods and contribute to the community’s tax base.
© 2010 DL Perkins LLC. All rights reserved | Call (877) 525-4321
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