Today’s M&A digest covers the value of a limited auction when you’re selling a business and the risks you face when delaying yourplan.
Selling A Business – The Value of a Limited Auction
“I am sure that all of you are aware of Facebook’s acquisition of Instagram in early May. All the focus was placed on the $1 billion dollar price that Facebook paid for a company with only 12and no revenue to date.
Very little focus was placed on this: The original bid for Instagram came from Twitter. The co-founder of Instagram, Kevin Systrom, then doubled the value offered by approaching Facebook.
So now you know why Facebook was willing to pay such an outrageous price to scoop up Instagram: a limited auction.”
The Risks of Delaying Your Exit Planning
“We meet far too many business owners at our M&A conferences who tell us a similar story. Something like, “I was ready to act on my exit plan in 2007 but decided to wait expecting my business to be doing even better in 2008.”
Unfortunately, as we all know too well, the global meltdown of our financial system put quite a few business owners on the sidelines in 2008. Many are still in a holding pattern, waiting for things to “get better” once again.
The problem with waiting now is that our current M&A environment can hardly get any better.”
Need to learn more about exit planning? Download this free whitepaper, Exit Planning Basics: What You Need To Know Before You Start by clicking on the link.