Groucho Marx is credited with the following quotation: “I’d never join an organization that would admit me as a member.” That same line of logic can sometimes be found among entrepreneurial owners of businesses. Their version would be: “I’d never sell to someone who would buy my business.” The latter stages of a transaction are … Continued
There is a divide occurring in our economy between small and large businesses: what is seen in the media does not match what is being experienced by the greater economy. We are told that the credit quality of large businesses is strong, and the data support this conclusion. In fact, the last time large businesses … Continued
It is downright painful to admit that investment bankers aren’t the most important parties in the financial value chain. After over thirty years of pitching that a competitive marketing process is the answer to almost any capital need, a reflective look back casts a shadow on that line of thinking. Investment banks provide an essential … Continued
The ever-unsatisfying answer is…it depends.
The Market Our reference to market means the market of buyers and investors that provide liquidity to owners of privately-held middle market size businesses. That market has changed dramatically in the last thirty years. For reference, prior to 1980, most privately-held businesses were bought either by other companies, when there was a strategic reason for … Continued
Prospective acquirers are selling you on selling to them. Here’s how to think about what they’re telling you.
It takes a village.
Leaving succession decisions for the next owner avoids tough choices but adds risk for the next owner
The dynamic nature of pension liabilities makes them difficult to quantify in a transaction
Successful acquisitions and investments are borne from a thorough self-assessment