Timing a Merger, Acquisition or Exit?

by | Sep 23, 2013 | Blog

By Jeff Bronswick, Managing Partner

Do you ever find yourself wondering if there is an opportunity to grow, expand or exit your business?

Does this then lead to a barrage or additional questions including but not limited to…

  • What is my company worth?
  • When is the right time to exit?
  • Are there companies out there that would be good merger or acquisition candidates?
  • How can I get started?

If you do find yourself asking these questions, know this…

You are not alone!

For 25 years I have worked professionally as a CPA, and have been involved in a multitude of transactions and companies of all sizes find themselves asking these questions.

That is because the decision to buy a business, or to sell your business is a huge one and it isn’t a process that you want to go through alone.

Not All Transactions are the Same

When it comes to M&A (Merger and Acquisition) transactions, there are so many options.

Every business has different life cycles which make them a candidate for different types of transactions at different times.

When a company is in a rapid growth mode, they may be in a great position to acquire companies.

However, if a business is cash strung, but has some solid customers or upside, they may be ripe to merge or be acquired. Potentially ending up in a leveraged buy out if the company is in bad enough shape.


Is it Time to Exit?

There are a myriad of reasons why an owner may choose to exit. Nonetheless, there are many potential transactions and they are certainly not the same.

As a business owner myself, I can tell you that the idea of selling my business brings a wealth of emotions to the surface.

And considering I’m not actually thinking about it makes it clear that this decision would be huge.

Entrepreneurs tend to put their heart and soul into their companies, so this is a really important question to ask yourself.

Is it time for me to exit?

There are an array of factors that make it a good time to exit.

One of course is whether you are really ready to potentially step away.

Another would be opportunity based. Let me ask you this, if the right opportunity presented itself, could it change your immediate desire to sell?

But one thing is for certain. This is a very important question and at some point all business owners must ask themselves.

Hopefully you choose your timing carefully!

Mergers, Acquisitions and Exits: Help Seeing The Light

The idea of a massive change to your business may be a little scary.

Trust me when I say… I know!

But M&A activity is one of the fastest ways to grow your company, expand your resources or exit at a time that is right for you.

However, this isn’t something that you would want to do alone.

There are many options and advisory organizations that will help with your transactions.

And while these companies may be a great partner for a portion of the transaction, may I suggest looking to your CPA for help?

A CPA’s Potential M&A Role

Beyond just bringing the books together for the new organization following a transaction.

Your CPA can be instrumental in your planning of any deal. With every deal being critical to the future, an extra set of eyes on the deal can make a huge difference!

Tax planning, Budget Planning, Valuation and even Operations Integration can all be aided through the eyes of a CPA firm that understands your business, your goals and your vision.

A well timed transaction can be game changing for your business.

Just be sure that you have the right team by your side as you work through your deals.

And if you need a little help, your CPA is a great place to start!

Stay Tuned: In the coming weeks I am going to break the Buy Side, Sell Side, and Exit Discussions into 3 parts. So if you are even thinking about M&A for your business, there is plenty more to come!
Disclaimer: The information contained in this Blog (the “Blog”) is intended solely to provide general guidance on matters of interest for the personal use of the reader, who accepts full responsibility for its use. In no event will BRP, or its partners, employees or agents, be liable to you or anyone else for any decision made or action taken in reliance on the information in this Blog or for any consequential, special or similar damages, even if advised of the possibility of such damages.

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