Hello and welcome to our new blog.
Purpose of the blog is to share some interesting news and facts from the world of M&A.
Whether you are M&A professional or you just want to learn more about the industry, I encourage you to subscribe and stay tuned.
In my first article, let me share what I think it's important now for both sellers and buyers:
Yes, we are all going thru some challenging times, but with long-term focus all the challenges become just temporary. Best weather always comes after worst storm. Of course, there are a lot of worries about future of US Economy. Inflation, banks rising interests, shortage on labor market, shortage of materials and supplies and etc. No one can ever predict what the future will look like, but one thing is certain: opportunities in M&A industry will always be here.
Action items for Buyers:
- Focus on long-term. Think about 10 years ahead. Where would you rather be in 10 years? Which industry. You are not buying business to try and see how it works. You are buying long-term.
- Evaluate your access to capital. You must be prepared and be realistic. Current SBA interest rates are higher than the last 10 years in average. Use your cash wisely.
- Be prepared for some potential draw backs. Don't except that your offer will be accepted immediately. There are some cases when deal can fall apart at the last minute. Always have some plan B, just in case.
Action items for Sellers:
- It's hard to understand where you start. Connect with a broker first. Explain your vision, deal structure and your own expectations
- Prepare to walk extra mile. This is the time to make your business as best as you can. It's like selling your house, the better it looks, the quicker you sell.
- Start working with your accountant and make sure you have all financials in good shape. This is important. All sellers want a highest price for their business. It's not a secret that the price primarily depends on financials.
Finally, message to all: be strong, think long term and remain winner!
As always, if you have any question, feel free to contact us.