Selling Your Business: Consider This Good News
By Generational Equity
12/06/2016
According to a recent article in the Dallas Business Journal, quoting industry experts, "There is $1.3 trillion in capital ready to be invested by private equity firms as these booming investors are now attracting big money from foreign countries…"
"The availability of this funding and the interest of foreign investors has benefited our clients," said Carl Doerksen, our Director of Corporate Development at Generational Group.
While many large investments by foreign investors make headlines, 39 percent have fewer than 100 employees and 57 percent have fewer than 1,000 employees, according to statistics from the Organization for International Investment.
The White House report, Foreign Direct Investment in the U.S., states that since 2006 the U.S. has been the largest recipient of foreign direct investment in the world. According to the U.S. Commerce Department, "Foreign investors value the country's skilled labor force, diverse consumer markets, research universities and a predictable stable regulatory system."
"It is important to cast a wide net to obtain the maximum value for a business as well as to achieve other potential goals such as terms of payment, continuing in a management role, protecting current employees or keeping a business in a community," said Terry Mackin, our Managing Director of Mergers & Acquisitions. "M&A experts can help create a process with multiple interested buyers who will be more open to considering these factors as part of the conditions of the sale.
"In addition, there are specific steps owners can take prior to a sale to interest as many potential buyers as possible and to add value to the business as a whole," said Mackin. "With thousands of investment opportunities to consider, investors will quickly eliminate a business that has not taken specific steps to get ready for a sale or does not meet the criteria they see necessary in their individual market."
"There are thousands of businesses for sale at any one time," added Doerksen. "Marketing to investors means creating a clean set of books and a compelling marketing document to identify the real value of the business."
Business owners can find additional helpful information in our white paper, 5 Mistakes to Avoid When Selling Your Company, or attend one of our complimentary exit planning seminars.
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