How can sellers position themselves for success?
As the credit markets continue to strengthen, sellers who are sufficiently prepared will be able to choose the best time to approach potential buyers. If your business and/or industry is struggling in the current environment, now is not an ideal time to sell. It is better to focus on your operations to better position your company to exit when conditions improve. If your business is performing reasonably well, you should undertake a review with an eye to making some business enhancements in order to optimize the outcome of a transaction. To make your company as attractive as possible, consider:
- Building management depth and strength
- Improving financial and IT systems
- Developing your sales and marketing muscle
- Diversifying your customer base
- Implementing organic growth initiatives
- Rationalizing operations
- Addressing contingent liabilities
Are there other considerations for buyers and sellers?
In the context of an M&A strategy, both buyers and sellers should:
- Carefully plan out their objectives
- Identify the strengths of their business and growth opportunities
- Hire an experienced adviser to explore their options and help determine the best strategy
- Understand market trends and the outlook ahead
With good preparation and careful timing, companies can take advantage of today’s M&A market and position themselves to reap significant long-term benefits.
Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd., an Appointed Representative of Sturgeon Ventures LLP, which is authorized and regulated by the Financial Services Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd. conduct business in the U.S. and Europe, respectively.
This article was prepared for general information purposes only and is not intended as legal, tax, accounting or financial advice, or recommendations to buy or sell currencies or securities or to engage in any specific transitions, and does not purport to be comprehensive. Under no circumstances should any information contained herein be used or considered as an offer or a solicitation of an offer to participate in any particular transaction or strategy. Any reliance upon this information is solely and exclusively at your own risk. Please consult your own counsel, accountant, or other adviser regarding your specific situation. Any views expressed herein are subject to change without notice due to market conditions and other factors.
©2010 The PNC Financial Services Group. All rights reserved.
Bill Watkins is co-head of new business development for Harris Williams & Co., the premier middle market adviser, with a 20-year legacy in sell side M&A. Harris Williams & Co. is a member of The PNC Financial Services Group. Reach Watkins at (216) 689-2404 or [email protected].
