What value do mergers and acquisitions intermediaries provide to family businesses or privately held companies considering a sale? We asked Alex Panosian, Managing Partner of CW Growth Partners, a family investment office.
The right intermediary can add a lot of value. Here are three ways M&A advisors can help business owners prepare for the process of selling their company:
Preparing for the M&A process. “The first way that they’re going to add value is by pre-empting a lot of questions that we as a buyer are going to ask. There’s predictable things that we’re going to ask.
- Who owns the customer relationships?
- What is your customer concentration?
- What is your role as the owner today?
They can help you a prepare for those questions. Maybe you might have to make some changes in your business by bringing on a new salesperson or delegating more before you’re ripe to go out to market. An intermediary can help through that process and prepare you for sale another way.”
Keeping you focused on your business during an intensive diligence process. “We found that the process is very intensive. There’s going be a lot of data that we need, and the intermediary can collect and send to us. You’re still going to be focused on running a business. You’re not going to be able to be as responsive to our questions as a buyer. Let the intermediary do that. You focus on what you know how to how to do best.”
Educating you through the sale process. “There are many terms to know. What is a working capital peg? What does that mean? They do this all day, every day. Versus if you’re a business owner, maybe you’ve done a couple smaller acquisitions. But mostly this is going to be one of the only times you do this in your life. Using an expert can create a lot of value from an educational standpoint.”
Laurie Barkman is a business transition and M&A advisor for entrepreneurs and business owners, helping you capture value and plan a successful transition. Reach out to Laurie to schedule a complimentary call today.