When It’s Time to Sell. . .
. . .lining up a team of experts is essential.
March 2008 by Tom Polischuk
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Selling a company, or merging with another entity, is a high-stakes proposition. It requires a high level of expertise in multiple, specialized disciplines including legal, accounting, finance, and taxation. Many times, small business owners or entrepreneurs have put their whole life’s work into the business or, in some cases, several generations of a family name are being put on the block. If this is not enough to ponder, then look no further than the company’s employees and customers.
Any successful business owner understands the multitude of issues that must be handled when running a company in today’s highly competitive, complex business environment. What makes a company’s sale so critical is that all these factors come to a head in a relatively short period of time, with a certain finality being at stake, and also the goal in most cases.
It’s no wonder that obtaining objective expertise is a virtual requirement for any business owner who is considering the sale of a company. It’s a complex endeavor and packagePRINTING posed a number of questions to mergers and acquisitions (M&A) experts who have knowledge of the printing and packaging industry.
pP: What factors should a business owner consider to determine if the timing is right for the company to merge or be sold?
Bill Hornell, managing director, Mesirow Financial Corporate Investment Banking Group—The most important factor for a business owner to consider regarding timing is his or her personal objectives. For an entrepreneur, the sale of a business is a life-changing event. The owner needs to be sure he or she is ready to turn over the reins to another party.
Other important factors include the growth prospects for the business, its earnings performance, the strength of its management team, general economic conditions, and the quality of the potential buyers.
Andrew M. Apfelberg, Esq., Rutter Hobbs & Davidoff Incorporated—There are internal and external factors to be considered. Internal factors include the age and health of the principals, whether they have strong successors in place to assume the helm of the company, and whether the company’s performance is at a high or a low point given its recent history. External factors include the condition of the industry in general, ease of obtaining capital to finance growth, and the consolidation of various competitors or vendors.
Any successful business owner understands the multitude of issues that must be handled when running a company in today’s highly competitive, complex business environment. What makes a company’s sale so critical is that all these factors come to a head in a relatively short period of time, with a certain finality being at stake, and also the goal in most cases.
It’s no wonder that obtaining objective expertise is a virtual requirement for any business owner who is considering the sale of a company. It’s a complex endeavor and packagePRINTING posed a number of questions to mergers and acquisitions (M&A) experts who have knowledge of the printing and packaging industry.
pP: What factors should a business owner consider to determine if the timing is right for the company to merge or be sold?
Bill Hornell, managing director, Mesirow Financial Corporate Investment Banking Group—The most important factor for a business owner to consider regarding timing is his or her personal objectives. For an entrepreneur, the sale of a business is a life-changing event. The owner needs to be sure he or she is ready to turn over the reins to another party.
Other important factors include the growth prospects for the business, its earnings performance, the strength of its management team, general economic conditions, and the quality of the potential buyers.
Andrew M. Apfelberg, Esq., Rutter Hobbs & Davidoff Incorporated—There are internal and external factors to be considered. Internal factors include the age and health of the principals, whether they have strong successors in place to assume the helm of the company, and whether the company’s performance is at a high or a low point given its recent history. External factors include the condition of the industry in general, ease of obtaining capital to finance growth, and the consolidation of various competitors or vendors.
Companies Mentioned:
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