At Generational Equity, we find it fascinating to discuss with buyers post acquisition the reasons they acquired one of our clients. Here, we highlight the key factors behind mergers and acquisitions transactions closing during 2016.
The request in the Deloitte 2016 M&A Trends survey was a good one:
Please rank your top 3 M&A objectives, in order of their importance, with respect to your company’s M&A strategy for the next 12 months.
And so were the responses:
(You can read the rest of the survey here)
If you look closely at this list, the top three responses this year all dealt with expansion of customer base, expansion of products/services, and the pursuit of greater efficiencies. Technology and obtaining cheap assets were both scored low by the respondents.
Remember that this survey was comprised of results from 2,292 executives with corporations and private equity firms in the U.S. So the survey results are very reflective of the goals and motivations of M&A events this year.
Far too often business owners wonder, Why would anyone want to acquire my company? What does the business have to offer to professional buyers, the type that will pay top dollar?
The reality is this: If you properly package, promote, and market your acquisition opportunity, the odds are good that you could attract one of these buyer types based on the tangible (and often intangible) assets your business possesses.
It is fascinating to talk to buyers post acquisition and learn why they acquired one of our clients. Quite frequently the areas of the business that attract them are not what the business owner contemplates when they first engage us. Our role as professional deal makers is to help the business owner to think outside of the box in its truest form. Because only then can we determine the types of synergies in product, location, customer base, and dozens of other categories that will attract the optimal buyer mix for our clients. This is what a few of our clients say about our marketing skills:
The common theme you will hear throughout all of our testimonials is this: I probably could have found a buyer on my own; however, it would not have been an optimal buyer and the deal structure would have not been as favorable.
Clearly your business will have some intrinsic interest to professional buyers if you are able to explain why. And that is where the real strength in the Generational Group is found: Our deal makers have ages of experience in explaining to skeptical buyers why our clients are good matches. We understand not only what motivates buyers but we also are clearly able to explain why our specific client is a good match for each individual buyer. This is a skill set that takes years of deal making experience to develop. Our team is second to none in the lower middle-market:
If you are interested in finding out if our services are a good match for your business, please call me at 972-232-1125 or email me at firstname.lastname@example.org and we can start a dialogue about what we can do for you.
By Carl Doerksen, Director of Corporate Development at Generational Equity.
© 2016 Generational Equity, LLC. All Rights Reserved.
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