This M&A Digest features discussion about your company’s HR policies on being buyer buyer, the timing of hiring an M&A advisor & the right time to, the level of confidence bankers have in the , and business disaster preparedness. Click on the headline to read the full piece.
“One of the most important steps in the proven Generational Equity system is our evaluation of each and every client’s company. Many of our smaller competitors bypass this step and take their clients directly to market. We don’t do this because we firmly believe that every one of our clients needs to have a good idea of what their company is worth in today’s market BEFORE entering the market and negotiating with buyers.
This vital step is important for several reasons…”
It’s simple: You can’t sell your business for an optimal price if your HR department isn’t solid. We examine what concerns buyers and what you can do today to improve your human resources policies.
“The answer to this question is really one of the most important issues that an owner of a privately held company should thoughtfully consider. If you are like most business owners that Generational Equity works with, a significant portion of your net worth, if not all of it, is tied up in one very illiquid asset: your business.
Think about that for a moment…
If you don’t have an exit plan in place and don’t have any idea when or how you will execute your eventual exit, then you have essentially answered the question above: NOW!”
“One of the surest signs of economic confidence and growth is bank lending activity…Sageworks, a financial information firm that has been gathering data on small business for years (and producing some leading research based on this data), recently released a study indicating banks indeed now are looking at small business loans in a much more favorable light.”
“Nearly every business owner that we meet with asks the same question: When is the best time for me to sell my company? Although this can be quite a complicated decision for many business owners to make, if you take the personal issues out and look at it through the lens of a purely financial decision, the optimal time to exit is when the market tells you it is time and your business indicates the same.”
“From a buyer’s perspective, if you have a plan in place that adequately documents each of these areas in light of disaster or emergency, you will be creating an investment opportunity that will give confidence that your business will continue despite disruptions.”
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