M&A Prep: Is It Worth It?

Creating a business that is deal ready can make all the difference to your financial security in the long term- be that attracting investors, key performers, or in retirement. Set your business up to succeed short, mid-, and long-term.

If you, or the leadership team in your company, have some vague, distant dream of a big payout at the end of a transition, I’m writing to you. If the long term goal is to sell your company, grow through an acquisition, or pass the company on to a family member, then this is the time for you to take in the nuts and bolts of that dream.

How many of you are business owners or founders? How much do you know about the process of buying or selling a business? Creating a business that is “deal ready” can make all the difference to your financial security. Join us to put these elements in place to set your business up to succeed short, mid- and long-term.

I know that there are business owners reading this. Is anybody here an advisor to business owners?

How often do you struggle to communicate the importance of preparation to business owners who plan to obtain financing, attract investors, and/or buy or sell one day? I’ll bet you can think of many ways that well-intentioned, very knowledgeable owners took their deals off the rails with something said or done, in the heat of the moment, or under stressful conditions, that you as the advisor were powerless to prevent, and the owner later regretted.

Current stats put the chances of closing a deal at about 50/50, if the conditions are right.

The stats are equally dismal if the deals close, fail to integrate successfully, then, 3 years out most are considered a failure. If your long term plan for financial security includes selling your business or passing that business on to employees or family, then you are in the right place.

You can add tools to your toolbox and start preparing for a successful transaction today.

A prepared owner/founder is a sophisticated owner/founder. Investors, buyers and sellers will extend greater respect to that prepared seller.

I would like to help you beat the odds and prepare for any transition – tips for clinching the close.

It’s your business, your path and you’ve done things your way. But, what if, with the help of a trusted team of advisors, you could walk into that next chapter with more confidence, more money in the bank, and your legacy intact?

Years ago, my husband, JD, and I, started a business, with another couple who are long time friends.

We all brought our baggage to the business. JD and I come from families of business owners, mostly construction and service businesses.

At the time, I was a mental health and substance abuse therapist. I had worked with people who faced challenges, changed habits, and created meaning in the midst of disruption. Very similar to those who work to bring businesses to life, isn’t it?

Our friend, Preston, had this brilliant idea around document storage- and we called the company, Document Warehouse. His wife, Lorie, had the marketing expertise. JD brought in the finance and investment banking experience. I knew the psychology of ownership. From the very beginning we set the intention to sell when the “time was right” to a particular buyer. Our target was Iron Mountain.

While our goal was to sell, an equally important goal for the four of us was to maintain our friendship.

Each decision made, client obtained, system and process put into place, was designed to fit into Iron Mountain’s model for acquisition. And, We did it! We learned the importance of setting things up to work.

We maintained our friendships while we worked through our differences & challenges within the business.

We did it imperfectly and it took work. Take the steps to creating the Ultimate Owner Experience ~ building value in your business at every stage of growth and through every transition.

Those steps include knowing the process for transition and own the responsibility for leading the team at every step of the way. As Owner, you must practice the systems that add value to the business and prepare yourself, your people and the company for a transition.

Wendy Dickinson

About the Author

Wendy Dickinson is the founder of Ascend Coaching Solutions LLC, a coaching firm that specializes in working with business owners and executives who plan to expand their leadership capacity as their business grows.

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