Preparation: The Key to Securing the Best Value for Your Company
This week on “In Process: Conversations about Business in the 21st Century,” we begin our series of podcasts 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?" Visit the dedicated website of the event to learn more at www.PreppingThePrincess.com.
There is certainly a lot of excitement in the merger and acquisition (M&A) market currently. Interest rates are low. Capital is abundant, both at private equity groups as well as strategic investors. The “strategics” seem to have more cash on their balance sheets than ever before in history, and so that lends to a very healthy M&A environment. Coupled with tax cuts, sellers are in a position to realize some significant net cash proceeds advantages―but you have to be prepared.
In the first installment of our six-part podcast series, show hosts Evelyn Ashley and John Monahon speak with Aprio’s Michael Levy, partner-in-charge of Transaction Advisory Services, and Yelena Epova, partner-in-charge of International Services, about financial and tax considerations. Aprio is Georgia's largest full-service CPA-led advisory firm.
“From a due diligence perspective, you get benefits from experienced professionals who understand what sellers and buyers think about when going into a transaction,” said Michael. “Many of our clients are very interested in learning about the market and the process. The earlier you can start to have those conversations, the more prepared you can be to enter into a transaction. Preparedness absolutely translates into transaction value, i.e. more dollars in sellers’ pockets.”
Being prepared for a transaction not only gets you increased value from a purchase price perspective but also affects the time you spend in the process, which is rigorous. So, when you're prepared, the credibility with the buyer goes up that much more as well as increases the probability that you will have a successful sale transaction.
“You want to make your company is due-diligence proof,” said Yelena. “You don't want to find out through the process ‘Oops, I haven't done this or this is not right.’ There will always be some questions, but you don't want to have major surprises.”
During the course of the podcast, entrepreneurs, business owners and C-level executives will learn about the:
- Current state of the M&A market
- Tax changes and implications to consider
- Why due diligence is essential and the types of advisors you need
- Importance of an audit and other financial reports
- Options for structuring a deal
- Pros and cons of earn-outs
Learn about the steps you can take to prepare your business for a sale now or for the future 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.
“Prepping the Princess” is an invitation-only event for C-level executives and business owners. The event will provide substantive information on the key elements, which most every business should possess, to make it an attractive participant at the sale dance. For more information on the event and to request an invitation, please go to preppingtheprincess.com.