Taking the proper steps to prepare a business for sale serves dual purposes: it not only enhances the ownership's organization and understanding of their main value drivers in today’s market but also establishes us, their M&A Advisor, as experts on the fundamentals of the business. This depth of understanding by an intermediary is crucial as we advocate and negotiate on behalf of our client’s best interest throughout many stages of a sale process.
Understanding Business Fundamentals Through Thorough Preparation
Properly preparing a business for market begins with preliminary discussions on the unique M&A goals of each owner as well as the main value drivers of the business. However, a preliminary discussion is simply the first of many steps toward compiling an Information Memorandum to capture the intricacies, growth opportunities, and true value of a target business.
The Value of Time
Rushing to market is a common pitfall for first time sellers. Our experience has reinforced the value of patience; taking additional time to prepare can significantly impact the quality of the presentation and the eventual success and value of a transaction. Thorough preparation allows us to uncover and understand every facet of the business, ensuring that no surprises come about during critical moments later in the process.
Patience and Preparation are Key
Properly preparing a business for sale prior to going to market, is unequivocally one of the most critical actions a seller can take. By fully understanding and accurately articulating the business opportunity to prospective investors, we position the company optimally for the market, leading to better outcomes and smoother transactions.
Embracing the need for thorough preparation is essential for sellers looking to maximize their outcomes in the M&A process. In our experience, allowing for at up to 3 months of preparation has shown to have significant impacts on the outcome of our transactions. For expert guidance on meticulously preparing your business for a successful M&A transaction, contact M&A Advisors today.
"This material has been prepared for information and educational purposes only, and it is not intended to provide, nor should it be relied on for tax, legal, or investment advice. You should consult with your own tax, legal, and financial professionals for your specific situation.
The views and opinions expressed in this article are those of the author and do not necessarily reflect the views or opinions of Finalis Securities, LLC. Securities offered through Finalis Securities LLC Member FINRA/SIPC. M&A Healthcare Advisors and Finalis Securities LLC are separate, unaffiliated entities."