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Exit and Growth Strategies for Middle Market Businesses

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So You Want to Successfully Sell Your Business?

By Jim Eaton | Sep 24, 2013

Don’t Forget the Missing Link.

LinksStatistics show that many companies, particularly of the privately held small to middle market variety, simply are not ready to be sold once ownership decides to pull the trigger and enter into a potential transaction process.  The investment banking community is full of examples of clients desiring to sell and/or with deals on the table only to see them collapse during due diligence, if not before, because of false value expectations or simply a lack of strategic organizational structure and execution capability.

Clearly, such sell side companies arrive on the radar screen of strategic or financial buyers alike for one reason or another…(1) market position, (2) proprietary product(s), (3) financial strength, (4) roll-up strategy, (5) backlog buy, (6) talented personnel, etc., etc.  These attributes are typically quite visible in the marketplace and are pivotal to any potential transaction.  But it is what can’t be seen at the expression of interest, management presentation, plant tour, or letter of intent stages, that can and typically will sour the deal to some degree or perhaps even in total. Read more »