So this is the fundamental question: do you want to exit your business with a boom or a bust? Many baby boomers have built highly successful businesses, but have failed to build proper succession plans or plans to monetize their investment through an exit. During the tough years of the recession business valuations remained low and many boomers were reluctant to explore transactions to sell their businesses. However, recently valuations have risen. Rising valuations, combined with the “black powder” of institutional money looking for companies to buy, have prompted many boomers to explore opportunities to sell their business. Unfortunately, all too often the business owner has not taken the necessary steps to prepare their business for a sale. This creates a crisis situation when a potential acquirer expresses interest and begins to request financial and other information that the company is not prepared to produce at the level of quality necessary to maintain the momentum of the transaction. Then the business owner is left scrambling to put things in order that could have been addressed previously with proper planning. If the business owner cannot produce the necessary information and provide assurance to the investors regarding the financial soundness of the business, transactions stall and valuations diminish.
In our practice, we represent many businesses on the sell side of transactions. We prepare the company for a liquidity event by addressing the complex tax, estate, financial reporting and other financial planning objectives of our clients. In addition, through our deep network of professional resources we work with our clients to put together an “A-Team” of advisors including attorneys, investment bankers and other professionals that are best suited for our clients based on business size, industry and personality.
Whether you want to sell and retire, take some money off the table, or recapitalize, contact us to ensure that you are addressing the critical steps and have the right team in place to maximize the value of your transaction. The results of our work are proven and withstand scrutiny at the highest level with taxing authorities, the investment community and other key stakeholders.
Please contact Martini, Iosue & Akpovi by phone at (818) 789-1179 if you have any questions or would like more information.