Today’s M&A Digest explains why a common saying rings true when selling a business and explores how FleetPride grew as part of a platform company strategy. As always, click on the headline to read the full article.
“One question that regularly comes up is, “How many targets should I approach when trying to find a buyer or investor for my company?” Unfortunately there is no rule of thumb that you can apply to this. The number of targets that you approach will be determined by several factors…
Having said that, one axiom that does apply: One target is no buyer. In other words, do not make the fatal assumption of who your buyer will be at the outset of yourprocess.”
“[S]ince 2006 FleetPride has been part of an aggressive platform company expansion strategy. Six years ago Investcorp (along with Ridgemont Equity Partners) invested in FleetPride. In the ensuing years, FleetPride made more than 30 strategic in related transportation industry companies.
This is a clear case of a company being acquired with the sole purpose of using it to bolt on additional companies with the goal of eventually packaging a much larger entity for sale or public offering.”
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Want to learn about other common mistakes business owners make when selling a business? Read Generational Equity’s complimentary whitepaper, 5 Mistakes To Avoid When Selling Your Company.