M&A Sale Consideration Topics Sellers

M&A Sale Consideration Topics for Sellers

M&A sale consideration topics for sellers of middle market businesses can save you from chasing the impossible and help you maximize value when being acquired. When owners of privately held businesses start thinking about transitioning into the next phase of their lives by selling a company and cashing in on years of hard work there are some very common misconceptions about how to do this. These misconceptions are embedded in the two most important elements of the process:

  1. Who is the Buyer
  2. What is the Valuation

These are extremely high level concepts that are each made up of countless variables that are changing all the time. Because they are so important to successful M&A transactions, I would like to highlight some of the important components to get comfortable with before sharing your thoughts on possibly selling with anyone outside of your trusted circle.

  1. Learn what viable buyers are looking for now
  2. Avoiding common pitfalls when getting started
  3. How vital confidentiality is to the entire process
  4. Valuing your business based on its future potential
  5. Find out why “multipliers” and “rules of thumb” are usually wrong
  6. Pinpoint the characteristics of your best and worst buyers, and learn methods for finding buyers
  7. Identifying valuable business assets that aren’t on the balance sheet
  8. The importance of protecting your vital trade secrets during the selling process
  9. When should you sell? Now? Next year? In five years? What makes timing essential
  10. How normalizing historical financial statements can make a big difference
  11. Using market analysis as your base to build value
  12. Make the current economic trends serve you
  13. How to develop credible financial projections based on economics
  14. How to present your company’s history properly
  15. Explore the right and wrong ways to present your financials
  16. Strategies for maximizing your valuation
  17. Locating and managing multiple buyers
  18. What inside a business deters buyers
  19. Build sound business strategies to help protect you in a changing economy
  20. Enhance your buyer’s perception of a long-term strategy
  21. Properly qualifying your buyers can save much more than time
  22. What to look for when dealing with investment groups
  23. Keep control of the process right up until the check is in the bank
  24. Taking care of your employees – now and after a sale
  25. How to make informed decisions

The best odds you are ever going to have in taking business risks are 49% in your favor and 51% in failure. Don’t be under prepared. Rolling the dice and going out there to see where things shake out when you really do want to sell is going to end up badly.

Understanding what makes an attractive M&A target and what contributes to a premium valuation is the obvious first step. If you’re there, great. If not, it may be time for a pivot to set yourself up for success in the future. Success is the goal. Outcome over activity.

©2023 ALIGNMT LLC | Financial Management | Mergers & Acquisitions | Investor Relations


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