It goes without saying that the M&A process is a complex one, which is why it’s imperative that company owners considering the sale of their business are fully informed of the risks and consequences associated with trying to go it alone. Prior to taking your business to market, there are a number of issues which need to be addressed in order to prevent missteps during the sale. The most nominal of inaccuracies early on could result in implications that could later contribute to the breakdown of the process – costing all parties involved additional time and money.
It could be that you’ve become completely immersed in your business sector over the years and as a successful business owner, you believe that you’re well positioned to take on the sale of your company head on. While this may be true, even those who know their business inside out could be setting themselves up to fail without the assistance of an M&A advisor. In most cases your company will be your greatest financial asset, so unless you also happen to be an expert in deal structuring, you cannot afford to be inexperienced when it comes to its sale.
The amount of business owners who attempt to enter the seller’s market with unrealistic expectations of their company’s value is surprisingly high. That’s why the importance of having a professional business evaluation completed on your company before you enter the market can’t be stressed enough. From this you will establish a benchmark value for your company, meaning your expectations will be in line with that of the market and you’ll be much more likely to complete a deal.
While this may sound like an ideal situation for many, it has the potential to be your biggest pitfall. There is expertise required in distinguishing serious would-be purchasers from those who are just shopping around for the cheapest deal, which could prove quite a challenge for the average business owner. If your lack of knowledge in M&A is apparent you could also become an easy target for those looking to take advantage. For example, you may find yourself presented with complex and risky terms as part of an offer and may not detect the risk involved. While it’s understandable to get caught up in the excitement of the interest shown in your business, without the guidance of an M&A firm you will likely end up feeling overwhelmed when the offers come rolling in.
The process of due diligence involves a great deal of paperwork and fineprint in relation to the operational assessment of your company. There’s also an exhaustive amount of paperwork regarding aspects of accounting, legal and tax. Tax discussions can be particularly in-depth and cover a range of details ranging from tax credits to jurisdictional issues and estate planning. All of this of course takes up a significant amount of time and undertaking this yourself will mean spending time away from running your business.
When selling your business it’s vital that you have access to the relevant expertise needed to progress your sale and ultimately close a deal that’s been structured in your favour. The above examples of what could go wrong are just a small selection of the things you will need to think about. It’s worth bearing in mind that going it alone isn’t impossible, but you will need to ensure that your knowledge of the M&A process is adequate and that you are able to free up what could be up to thousands of hours to take your business to market on your own.
The other option is to obtain the services of an M&A advisor. In doing so you will alleviate a lot of the stress associated with the sale process and they will save you a significant amount of time and money in the long run.
For more information on how Generational can help you to successfully exit your business, you can attend one of our complimentary M&A workshops. To start your journey to success, find your nearest M&A workshop today.
it all started with a conference.
start your story today,
speak directly with one of our senior advisors +1-972-232-1121
The information we learn from customers helps us personalize and continually improve your experience. Here are the types of information we gather.
We receive and store any information you enter on our Web site or give us in any other way. We do not sell or rent your personal information to others without your consent. We use the information we collect only for the purposes sending promotional information, enhancing the operation of our site, serving advertisements, for statistical purposes and to administer our systems. We DO NOT use third parties to provide customer service, to serve site content, to serve the advertisements you see on our site, to conduct surveys, to help administer promotional emails, or to administer drawings or contests, but reserve the right to do so in the future without advance notice.
By submitting my name electronically and clicking the “submit” button, I understand that I am providing Generational Group, Inc., Generational Equity, LLC, Generational Capital Markets, LLC, DealForce LLC, their affiliates, representatives, contractors, etc. (“Generational Group”) my telephone number, which may include a number that is wireless and/or a number that is on a national, state, or other Do Not Call registry or list. I hereby consent and agree to receive telephone calls including any autodialed and/or pre-recorded telemarketing calls and/or text messages (telemarketing) from or on behalf of Generational Group at the telephone number provided. I further consent and agree that telephone calls may be made using automated technology such as an automatic telephone dialing system, artificial or prerecorded voice, or SMS text messaging. Consent is not a condition of purchase. I further warrant and represent that any telephone number provided is not on any state or national Do Not Call Registry and that by agreeing to these terms and conditions that if any number provided is on any such registry, I hereby consent and agree to receive telemarking calls and/or communications including any phone calls, text messages, URLs, links, emails, etc. to the telephone number(s) and/or any e-mail addresses provided. I understand that by entering my name in the electronic form provided, that I am signing my name as equally as if it was my handwritten signature and that it is my intent to provide an “electronic signature” as that term is defined in state and federal law, as well as industry practices for e-commerce.
For reasons such as improving personalization of our service, we might receive information about you from other sources and add it to our account information.
Generational Group may license the use of its intellectual property including but not limited to its name, likeness, and logo for the use of affiliated offices. Such affiliated offices may not be owned, controlled, managed, supervised or staffed by employees, officers, or agents of Generational Group. Affiliated offices may be independently owned and operated. For more information about a particular office, please contact Generational Group at its office in Dallas, Texas.
This page may contain other proprietary notices and copyright information, the terms of which must be observed and followed.
Information on this web site may contain technical inaccuracies or typographical errors. Information may be changed or updated without notice. Generational Group may also make improvements and/or changes in the products and/or the programs described in this information at any time without notice.
Generational Group does not want to receive confidential or proprietary information from you through our web site. Please note that any information or material sent to Generational Group will be deemed NOT to be confidential. By sending Generational Group any information or material, you grant Generational Group an unrestricted, irrevocable license to use, reproduce, display, perform, modify, transmit and distribute those materials or information, and you also agree that Generational Group is free to use any ideas, concepts, know-how or techniques that you send us for any purpose.
Our computer system protects personal information using advanced firewall technology.
Information Generational Group publishes on the World Wide Web may contain references or cross references to other products, programs and services that are not announced or available in your country. Such references do not imply that Generational Group intends to announce such products, programs or services in your country. Consult a Generational Group representative for information regarding the products, programs and services which may be available to you.
Generational Group makes no representations whatsoever about any other web site which you may access through this one. When you access a non-Generational Group web site, please understand that it is independent from Generational Group, and that Generational Group has no control over the content on that web site. In addition, a link to a non-Generational Group web site does not mean that Generational Group endorses or accepts any responsibility for the content, or the use, of such web site. It is up to you to take precautions to ensure that whatever you select for your use is free of such items as viruses, worms, Trojan horses and other items of a destructive nature.
IN NO EVENT WILL Generational Group BE LIABLE TO ANY PARTY OR ANY DIRECT, INDIRECT, SPECIAL OR OTHER CONSEQUENTIAL DAMAGES FOR ANY USE OF THIS WEBSITE, OR ON ANY OTHER HYPERLINKED WEBSITE, INCLUDING, WITHOUT LIMITATION, ANY LOST PROFITS, BUSINESS INTERRUPTION, LOSS OF PROGRAMS OR OTHER DATA ON YOUR INFORMATION HANDLING SYSTEM OR OTHERWISE, EVEN IF WE ARE EXPRESSLY ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
Furthermore, all information contained within this website is the property of Generational Group.
Success, you have been added to our list.