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Ryan Binkley asks: Is your business buyer ready?
By Generational Group
11/10/2016
One of the questions we get at our M&A seminars is this: How can I build a truly buyer ready business?
This is a great question and one that more business owners should address because you can build a business and do it in such a way that that actually enhances the value of the company in the eyes of buyers. Conversely, you can also expand your company but make decisions along the way that may in fact grow revenue and profits, but do so in ways that are seen by buyers as less than optimal.
For example, pursuing a strategy of taking your largest customer from 10% of revenue to 50% will certainly grow revenue, but will also increase the risk associated in your company.
And growing business by cutting prices will again, drive revenue to the top line but may detrimentally affect the bottom-line; again, raising risk issues in the eyes of buyers.
So our lead article this month provides you with some concrete ideas on how build a business AND make it “buyer ready”. I trust you will find it useful as you grow your company.
And remember that the Generational Group is always here to assist with your specific exit plans. Over the past several years no M&A advisory firm has closed more lower middle market companies (companies with valuations up to $100 million) than we have. This is based on Thomson research which you can look at by following this link:
In addition to our rankings, we have also been recognized by The M&A Advisor, a leading M&A association, as Valuation Firm of the year in 2014 and 2015 and M&A Consulting firm of the year in 2011 and 2013.
Our dealmakers are skilled and experienced in finding and negotiating with optimal buyers and we are ready to meet with you and discuss your specific opportunities.
Since early 2017 is expected to have strong buyer demand in the lower middle market, we are encouraging you to reach out to us if you are interested in attending another workshop or if you prefer a face-to-face meeting to discuss your exit options. We believe that it is vital for business owners to develop exit plans that will protect and defend the significant equity they have built into their businesses.
So please call us at 972-232-1121 or send an email to: info@generational.com if you would like information about a seminar in your area or if you are considering a meeting with us. And feel free to subscribe to our corporate blog using this link:
– Generational Groups M&A Blog
Subscribing will allow you to stay up-to-date on the latest trends in exit planning and provide timely research to give direction as you consider your exit timing and strategies.
Thank you for your time and wishing you all the best for the rest of 2016,
Ryan Binkley
President, Generational Equity