Investment Bankers to the Middle Market
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Current Business Exit Challenges

According to an article published by Robert Avery of Cornell University in February 2006, “the majority of boomer wealth is held in 12 million privately owned businesses, of which more than 70% are expected to change hands in the next 10 to 15 years.”

Mr. Avery further asserts that only 1 in 3 of these businesses will successfully "cash out", because of a fundamental oversupply of opportunities and because of a relative undersupply of liquid capital. If the fundamental laws of risk and reward prevail, only the least risky and most profitable businesses will transfer successfully, and, most often, the least prepared will be the ones left behind.

Since that time we have entered a period of restricted Credit Markets making it much more difficult for an interested buyer to complete the transaction. For a successful transfer of your business, you will need to avoid the common mistakes made by business owners selling a business:

  • Unplanned, No Positioning
  • Reactive, Single Buyer
  • Un(der)-represented
  • Market-Insensitive Expectations
  • Price Focused (vs. Terms & Structure)