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From the Desk of Ryan Binkley, President & CEO of Generational Group – March 2019
By Generational Group
03/11/2019
Hello and welcome to our March 2019 eNewsletter!
I hope that 2019 is off to a tremendous start for both you and your family and that you are experiencing a very successful year.
I am often asked the following question by business owners contemplating an eventual exit from their business: What is the real value in hiring an investment bank to represent me?
We get this question so often that we recently dedicated one of our recent insight articles to it – the value of hiring an M&A advisor. Although there are many benefits to hiring an M&A advisor, we focused on two in our posting:
- The value of your time running the business
- The economic value to you of obtaining the maximum payout when you close
You must factor both of these into the equation you use to determine how to value the benefit of hiring representation.
In reality, you have only so many hours in the day and odds are good you are spending most of them simply running your company. Do you have the 1,000 hours it is estimated to take over a nine-month window to both sell your company AND at the same time, run it successfully? How would your spouse and family answer that question?
Certainly companies sell every day without professional help. However, studies show that those transactions are usually far from optimal and often close at a significant discount from true market value. Most business owners don’t even realize this until far after the deal closes.
So be sure to factor both of these into your exit planning “value” equation.
Remember that Generational Equity is always here to assist with your journey as a business owner and help you create a successful exit strategy when the time comes. Over the past decade we are both privileged and proud to have helped more lower middle market companies (those with valuations up to $50 million) successfully exit their businesses than any other M&A advisory firm in North America. Since our inception, we have transferred nearly $5 billion in wealth to our clients and their families.
Our M&A dealmakers are skilled and experienced in negotiating within our vast network of M&A buyers and we are ready to meet with you to discuss your personal goals and objectives.
Please reach out to us if you are interested in attending another exit planning conference or if you prefer a face-to-face private meeting with one of our M&A professionals to discuss your options. We believe that it is vital for business owners to develop exit strategies that will protect and defend the significant equity they have built into their businesses. We are passionate about assisting our clients in this process and helping them make confident, informed decisions.
Please call us at 972-232-1121 or send an email to info@generational.com if you would like information about a conference in your area or if you would like to meet with us one-on-one. If you would like to find a conference near you, use this link: M&A Conferences
And if you haven’t already done so, please feel free to subscribe to our exit planning blog using this link: Generational Equity M&A Blog
Subscribing will allow you to stay up-to-date on the latest trends in M&A planning and provide timely research to give direction as you consider your exit timing and strategies.
Thank you for your time and have a blessed day!
Ryan Binkley
President & CEO, Generational Group