How a Middle-Market Company Can Prepare for a Sale
Michael Bennett
Because selling a business requires extensive preparation, starting the process early will help provide the best opportunity for a successful outcome.
Because selling a business requires extensive preparation, starting the process early will help provide the best opportunity for a successful outcome.
Strategic considerations —Part I of a three-part series. We are often asked by clients when they should begin positioning their companies for a sale or liquidity event. Many entrepreneurs have a clear view of an exit from the day they open the doors. Every strategic and operating decision is made in the context of creating value to be monetized at exit. These companies often have experienced investors and boards who have been down the road to exit before, providing invaluable advice regarding strategic focus and positioning.
Multigenerational financial planning and wealth transfer are rarely ever simple. Each client brings distinctive and varied considerations, so even experienced planners can encounter something new every day. The current environment of rapidly rising inflation adds a new element to evaluate and may cause some increased client anxiety, but if planning is done right, then “headline news” should not significantly impact a client’s long-term strategy.
There are two main categories of buyers: strategic and financial. These buyers are very different, each having its own pros and cons. At Crewe, we often advise our clients…
According to a recent study compiled by Cerulli Associates, roughly 45 million households in the U.S. will transfer $68 trillion over the next 25 years, making Generation X the primary beneficiary. To address this, I like to think about this in two separate phases that we work through with clients to prepare for an efficient generational wealth transfer.
The M&A and growth-capital world can be difficult to navigate. It’s crucial that you hire a professional firm with your best interests in mind and the capabilities to execute on them, while maximizing the valuation of your business and ensuring any transaction goes as smoothly as possible. The decision about who will provide these pivotal services should not be made without carefully weighing your options, in order to identify the best path forward for you and your business.
M&A has the potential to spur growth for many businesses, but it can be a complicated process and there are many questions that business owners should ask before making a decision.
