Prepping the Princess for the Party: Is Your Business Ready to Sell? Part Four

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Tapping the Broad Universe for Buyers

 

This week on “In Process: Conversations about Business in the 21st Century,” we continue with the next podcast in our series dedicated to the topic of preparing your business for sale. This series leads up to the physical event we are hosting at 5:30 p.m., on Thursday, Apr. 19, 2018, in Atlanta titled, "Prepping the Princess for the Party: Is Your Business Ready to Sell?"  

By many accounts, 2017 was a very successful year for transactions, especially for the community of merger-and-acquisition (M&A) professionals at large. The stars were very much aligned for very positive outcomes with multiple offers occurring for many transactions.

In terms of 2018, most M&A professionals see a continuation of this trend with people being in the market, being ready to sell their business, and, basically, having a series of willing buyers who are interested in this kind of opportunity. It seems, too, there's plenty of money looking for a home, even though we've seen some dips in the stock market recently. Overall, there are a lot of buyers, particularly private-equity firms, looking for good acquisitions that involve smart strategic deals.

In the fourth installment of our six-part podcast series, show hosts Evelyn Ashley and John Monahon speak with FOCUS Investment Banking’s George Shea, partner and IT team leader, and Manan Shah, managing partner and leader of the Government, Aerospace and Defense Group, about how to find the right buyer for a business in the broad universe of prospects. FOCUS Investment Banking is a national middle-market investment banking firm providing merger, acquisition, divestiture and corporate finance services.

“Private-equity groups have so much money right now that they're in danger of having to commit back to their limited partners,” said George. “That means they have to deploy it fairly quickly. We see this as a benefit to all sellers and certainly for investment bankers that represent them. There's a real opportunity for those private-equity groups to outbid strategics for the first time.”

It is critical for business owners to start educating themselves now about valuation and the underlying business considerations that buyers are typically looking for.

“Companies underestimate the need to keep on investing in a good team, a solid management team, along the way,” said Manan. “Often, when owners decide to sell their businesses―but haven't made those investments―they will have a tough time marketing their business or getting the right buyer.”

During the course of the podcast, entrepreneurs, business owners and C-level executives will learn about the:

  • Three categories of buyers along with challenges and opportunities for each
  • Elements that make a business sellable
  • Factors that make a business sellable
  • Factors that business owners should focus on to get ready for their exits
  • Key industries that buyers and investors are interested in now
  • Important role both internal and external research plays in attracting buyers

Learn more about the steps involved with retaining an investment bank’s services by streaming the conversation in its entirety in the player below, or download it to your mobile device via iTunes. Don’t miss a single episode, subscribe to our show “In Process Podcast” on iTunes to receive this episode as well as future episodes to your smartphone.