Selling a business is often the culmination of years of dedication, growth and personal investment. For business owners considering this significant transition, careful preparation is essential to ensure a smooth process and to maximize the value of the company.
The journey begins with a clear understanding of the owner’s personal and financial objectives. Whether the motivation is retirement, pursuing new ventures or achieving liquidity, defining these goals early on helps set realistic expectations for timing, valuation and the owner’s role after the sale. This clarity is crucial for shaping decisions throughout the transaction.
With these objectives in place, attention should shift to the company’s internal operations. One of the top concerns for prospective buyers is the business’s ability to function independently of the current owner. If the operation is heavily reliant on the owner’s daily involvement, developing a succession plan becomes a top priority. Identifying and empowering key personnel ensures operational continuity and helps instill confidence in potential buyers.
Financial readiness is another cornerstone of successful preparation of the business. Organized, accurate financial statements not only reflect the company’s health but also support a more favorable valuation. Owners should evaluate whether current systems provide transparency and efficiency — upgrades to financial reporting tools or enterprise systems may be worth considering to present a well-managed operation.
Externally, relationships with customers and vendors play a vital role in the company’s perceived value. Contracts should be reviewed for any clauses that could be affected by a change in ownership, and efforts should be made to maintain stability in these relationships throughout the transition process.
Equally important is a realistic and well-supported business valuation. While metrics such as EBITDA are commonly used, other factors — such as revenue diversity, market position and operational scalability — also contribute to the final valuation. By improving profitability and addressing risks, the owner can enhance the company’s appeal to buyers.
Selling a business is a major milestone that requires thoughtful planning and strategic execution. By approaching the process with clear goals, solid preparation and the right team of advisers, business owners can position their companies for a successful and rewarding transition.
M&A Market Activity
U.S. deal volume declined by 3.3 percent in the year-to-date period through May 2025 compared to the same period last year. Despite ongoing uncertainty from tariffs and geopolitical tensions, private equity firms remain well-capitalized and active, while companies are increasingly divesting non-core assets to sharpen strategic focus and enhance financial resilience.
The Cleveland M&A market experienced a 46.7 percent increase in activity in April 2025 compared to the same period in 2024, with several noteworthy transactions completed by both strategic acquirers and private equity firms. Park Place Technologies, Align Capital Partners, Oswald Companies, and Applied Industrial Technologies all completed strategic acquisitions.
Deal of the Month
On May 6, 2025, Cleveland-based Park Place Technologies, a global leader in data center and networking optimization, announced its acquisition of UK-based Computer Systems Integration Limited (CSI Ltd.), an IT Managed Services Provider specializing in hybrid multi-cloud solutions for legacy IBM systems. This represents one of the most significant acquisitions in Park Place’s 34-year history, second only to its 2020 acquisition of Curvature, Inc.
“This is an exciting time for Park Place Technologies,” said Chris Adams, President and CEO of Park Place Technologies, in a statement. “CSI Ltd. brings exceptional talent, deep hybrid cloud expertise and a stellar reputation for service excellence. By joining forces, we’re unlocking new possibilities for our customers around the world, delivering smarter, more agile IT solutions that power transformation.” ●
Sources: PitchBook™, S&P Capital IQ, MelCap Investment Banking knowledge, company websites and public company filings.
Andrew J. Chalhoub is an Associate at MelCap Partners LLC, a middle-market investment banking advisory firm.
For more information on MelCap Partners, please visit www.melcap.com or email [email protected].
