Around the Web: A Week in Summary
A recent article from Divestopedia entitled “How the Best M&A Advisors Deliver” explains the importance and value of an experienced M&A advisor in the business sale process. Maximizing value and improving how a potential buyer views a business are some of the most important factors in a sale, and also things that a good M&A advisor can help the management team work through.
The author goes on to stress the importance of having an experienced advisor on hand during the preparation phase of the selling process: their prior experience with this sometimes difficult and lengthy process makes them an invaluable asset to a seller. They are able to develop a complete approach that takes all important factors into account, from aligning the goals of the management team and shareholders with the exit to coordinating with legal counsel in developing negotiation strategies and more. An experienced M&A advisor has virtually seen it all and done it all, and in the end, can help relieve the stress of going it alone while increasing the probability of a positive outcome for a seller.
A recent interview posted on the Axial Forum, “Investor Jake Brodsky on Flipping the Script When Looking for Deals,” investigates the deal-making process from the unique perspective of a private equity firm associate based out of San Francisco. Jake Brodsky of Alpine Investors goes on to explain the value of a strong founding team as well as creating and maintaining a strong customer experience. These are both factors that, in his eyes, were very important to the success of a recent merger.
He goes on to mention that having multiple points of contact with potential sellers in such a competitive deal market is vital to keeping their company relevant in the transaction process. He also mentions the importance of planning and preparation before a sale: attracting the right buyers is always possible with the right kind of preparation.
A recent article posted on the VR Business Brokers blog entitled “How To Buy a Business With Family – And Keep Your Sanity!” illustrates some basics on how to buy a business to own and run within a family. While it may seem like a clear-cut, easily achievable feat, succeeding in business with family members or close friends can be a difficult task. Conflicts of interest, decision-making authority, ownership stakes, day-to-day responsibilities and many other factors can not only put a strain on the health of the business but also the health of the relationships within the family. Important steps to take include:
- Establish business relationships
- Define ownership interests
- Put everything in writing
- Seek outside advice and conflict resolution
- Set realistic expectations
- Establish plans for buyouts and unexpected exits
- Consider the differences between establishing and inheriting an enterprise
- Learn to let go
As with any business endeavor, proper planning is essential to business success. This proves especially important when it comes to the purchase and running of a business with family: overcoming the unique obstacles and roadblocks that come with this type of ownership is definitely possible with preparation and planning.