Hiring the right advisory firm is critical to your exit strategy.
There are many firms that would like the opportunity of selling your business. But a firm that is capable of valuing, packaging, marketing and financing a manufacturing company with $200,000,000 in revenue wouldn’t have much interest in doing the same for a company doing $200,000.
Which of these categories do you fit into?
Publicly Traded & Large Businesses
There are over thirteen million corporations in the United States, and less than one percent of them are publicly owned. These companies are traded on stock exchanges around the world The rules that govern the sale of public companies like Ford, Microsoft, or General Electric are radically different from the rules that control the sale of privately held enterprises. Their mergers and acquisitions are typically handled by large investment banking firms.
We’re happy to leave deals of this size to the wolves of Wall Street.
The Middle Market
These range from substantial privately held companies with earnings from several hundreds of thousands of dollars to earnings in the millions of dollars. By our definition, this usually implies value between $1 million to $25 million. Most of the mid-market is made up of businesses built around a single product area and are frequently developed from scratch by entrepreneurs that had a passion for their trade. Owners of a closely held mid-market company usually have invested completely in the business, both financially and emotionally, and feel that the sale of their company is a very significant event in their lives. Companies like these are usually not run by a board of directors whose only motivation is the bottom line, and the owners care greatly about the future of the people who helped them build the company.
These are folks who have worked hard and smart to build their empires. Invariably, they are straight shooters who understood that their success depended upon delivering value and doing honest business. This is our strike zone. These are the people we love to represent.
Of the 13,000,000 or so American corporations, around 12,100,000 fit the definition of a small business, either due to the relatively small revenues generated, or the fact that a single person or small group of managers can run the operation. There are literally thousands of small business categories selling products and services from A to Z. Small businesses are the backbone of the American economy and the marketplace for their sale is active. We believe that the smaller a business from a revenue standpoint, the more effective the owner himself will be at effecting his own exit.