New Year, New Ownership
As we turn to a new year and a new decade, you may consider future ownership alternatives that will build upon your business in new and innovative ways. At some point, this “Exit” will occur and a transition into fresh hands will be inevitable. Your ownership alternatives include, but are not limited to, financial buyers, strategic acquirers, and family members.
When the time comes to select the proper suitor, it is vital you have a firm grasp of the underlying value of your business and any available information on the future owner.
The following is a brief overview of your likely buyers:
· Financial Buyers – Financial buyers are long-term investors interested in the return they can fetch by buying a well-managed company, and look to generate cash flow by boosting revenue, cutting costs, or creating economies of scale by buying similar companies in a “Rollup” fashion.
· Strategic Acquirers – A strategic acquisition is meant to create synergies across combined companies that boost the value of the resulting company greater than the sum of its original parts.
· Family Members – Selling to family members continues the business in generational succession, which may likely preserve the legacy of previous ownership.
Your exit is expected to be an emotional event, so it is important to have the proper broker who will fully prepare you to ease the transition process. This includes a value of your business tailored to all possible ownership scenarios that will allow you to make the most informed decision possible. Whether you are ready for sale in 2020 or not, ring in the new year by contacting a business broker and learn about your options for when succession is most appropriate for you and your business.
Let us help in the decision making process. Start today by calling 800-259-0637
Sunbelt Business Advisors