CapEQ™ | B Corp’s Post

Hiring any advisor is a tricky decision for business leaders. Service levels aren’t always clear, outcomes can be vague, and there’s always that nagging feeling that you may be paying someone to tell you things you already know. The M&A profession is no different. There are thousands of firms to choose from - business brokers, high street accountants, regional boutiques, professional services brands, or investment banks. Few entrepreneurs have previous experience of going through a business sale, so the questions you ask when choosing an advisor are critical. Remember, you’ve decided you want to sell your business. The goal is to actually COMPLETE on a sale – preferably for maximum value. Accreditations, awards, previous sector experience, fees don’t really indicate whether you will get a deal over the line. Skills matter more. To optimise your chances of successfully doing a deal that works for everyone, sellers and acquirers tell us these they value these skillsets most. ARTICULATION – a slick company prospectus presenting key facts and company USPs is more likely to get read than a tedious 90-page dossier ORIGINALITY – a large list of well-matched acquirers is more likely to generate interest from multiple parties, creating auction conditions so sellers can choose the best fit, terms and price TENACITY – acquirers are busy and may miss the opportunity. Contact info may be out of date, they may be in the thick of doing a complex acquisition. Good advisors keep going until we can speak to someone and get them to the table ORGANISATION – busy people means meetings sometimes need re-arranging, follow-up info needs sending, third parties need coordinating (eg lenders, tax specialists, regulators) MOMENTUM – interest dwindles with late follow-up, missing info, or sloppy scheduling. No owner wants to be in a situation where they are about to agree a deal only for a new bidder to pop up too late in the process. Energy and drive are important soft skills to keep timescales aligned DEFENSIBILITY – key financials and forecasts will be interrogated, so owners need to be confident they are accurate and achievable. Acquirers have their boards to satisfy, while owners will want to reduce price-chipping in the final negotiations LEVERAGE – faced with much larger acquirers, owner-directors need advisors to put their business on an equal footing. Competing bidders helps here, but honest advice on when to push and when to concede also matters EMPATHY – M&A is stressful, so both sides need calm heads who can overcome tense moments to get a deal over the line for mutual benefit. After all, consensus and compromise is the key to negotiating. Good advisors will be able to demonstrate most or all of these skills. Hopefully, the above can act as a checklist to help shareholders set the right criteria when choosing an M&A firm to engage. Have we missed anything? Let us know in the comments below. 👇

Hiring any advisor is a tricky decision for business leaders. Service levels aren’t always clear, outcomes can be vague, and there’s always that nagging feeling that you may be paying someone to tell you things you already know. The M&A profession is no different. There are thousands of firms to choose from - business brokers, high street accountants, regional boutiques, professional services brands, or investment banks. Few entrepreneurs have previous experience of going through a business sale, so the questions you ask when choosing an advisor are critical. Remember, you’ve decided you want to sell your business. The goal is to actually COMPLETE on a sale – preferably for maximum value. Accreditations, awards, previous sector experience, fees don’t really indicate whether you will get a deal over the line. Skills matter more. To optimise your chances of successfully doing a deal that works for everyone, sellers and acquirers tell us these they value these skillsets most. ARTICULATION – a slick company prospectus presenting key facts and company USPs is more likely to get read than a tedious 90-page dossier ORIGINALITY – a large list of well-matched acquirers is more likely to generate interest from multiple parties, creating auction conditions so sellers can choose the best fit, terms and price TENACITY – acquirers are busy and may miss the opportunity. Contact info may be out of date, they may be in the thick of doing a complex acquisition. Good advisors keep going until we can speak to someone and get them to the table ORGANISATION – busy people means meetings sometimes need re-arranging, follow-up info needs sending, third parties need coordinating (eg lenders, tax specialists, regulators) MOMENTUM – interest dwindles with late follow-up, missing info, or sloppy scheduling. No owner wants to be in a situation where they are about to agree a deal only for a new bidder to pop up too late in the process. Energy and drive are important soft skills to keep timescales aligned DEFENSIBILITY – key financials and forecasts will be interrogated, so owners need to be confident they are accurate and achievable. Acquirers have their boards to satisfy, while owners will want to reduce price-chipping in the final negotiations LEVERAGE – faced with much larger acquirers, owner-directors need advisors to put their business on an equal footing. Competing bidders helps here, but honest advice on when to push and when to concede also matters EMPATHY – M&A is stressful, so both sides need calm heads who can overcome tense moments to get a deal over the line for mutual benefit. After all, consensus and compromise is the key to negotiating. Good advisors will be able to demonstrate most or all of these skills. Hopefully, the above can act as a checklist to help shareholders set the right criteria when choosing an M&A firm to engage. Have we missed anything? Let us know in the comments below. 👇

Hiring any advisor is a tricky decision for business leaders. Service levels aren’t always clear, outcomes can be vague, and there’s always that nagging feeling that you may be paying someone to tell you things you already know. The M&A profession is no different. There are thousands of firms to choose from - business brokers, high street accountants, regional boutiques, professional services brands, or investment banks. Few entrepreneurs have previous experience of going through a business sale, so the questions you ask when choosing an advisor are critical. Remember, you’ve decided you want to sell your business. The goal is to actually COMPLETE on a sale – preferably for maximum value. Accreditations, awards, previous sector experience, fees don’t really indicate whether you will get a deal over the line. Skills matter more. To optimise your chances of successfully doing a deal that works for everyone, sellers and acquirers tell us these they value these skillsets most. ARTICULATION – a slick company prospectus presenting key facts and company USPs is more likely to get read than a tedious 90-page dossier ORIGINALITY – a large list of well-matched acquirers is more likely to generate interest from multiple parties, creating auction conditions so sellers can choose the best fit, terms and price TENACITY – acquirers are busy and may miss the opportunity. Contact info may be out of date, they may be in the thick of doing a complex acquisition. Good advisors keep going until we can speak to someone and get them to the table ORGANISATION – busy people means meetings sometimes need re-arranging, follow-up info needs sending, third parties need coordinating (eg lenders, tax specialists, regulators) MOMENTUM – interest dwindles with late follow-up, missing info, or sloppy scheduling. No owner wants to be in a situation where they are about to agree a deal only for a new bidder to pop up too late in the process. Energy and drive are important soft skills to keep timescales aligned DEFENSIBILITY – key financials and forecasts will be interrogated, so owners need to be confident they are accurate and achievable. Acquirers have their boards to satisfy, while owners will want to reduce price-chipping in the final negotiations LEVERAGE – faced with much larger acquirers, owner-directors need advisors to put their business on an equal footing. Competing bidders helps here, but honest advice on when to push and when to concede also matters EMPATHY – M&A is stressful, so both sides need calm heads who can overcome tense moments to get a deal over the line for mutual benefit. After all, consensus and compromise is the key to negotiating. Good advisors will be able to demonstrate most or all of these skills. Hopefully, the above can act as a checklist to help shareholders set the right criteria when choosing an M&A firm to engage. Have we missed anything? Let us know in the comments below. 👇

Hiring any advisor is a tricky decision for business leaders. Service levels aren’t always clear, outcomes can be vague, and there’s always that nagging feeling that you may be paying someone to tell you things you already know. The M&A profession is no different. There are thousands of firms to choose from - business brokers, high street accountants, regional boutiques, professional services brands, or investment banks. Few entrepreneurs have previous experience of going through a business sale, so the questions you ask when choosing an advisor are critical. Remember, you’ve decided you want to sell your business. The goal is to actually COMPLETE on a sale – preferably for maximum value. Accreditations, awards, previous sector experience, fees don’t really indicate whether you will get a deal over the line. Skills matter more. To optimise your chances of successfully doing a deal that works for everyone, sellers and acquirers tell us these they value these skillsets most. ARTICULATION – a slick company prospectus presenting key facts and company USPs is more likely to get read than a tedious 90-page dossier ORIGINALITY – a large list of well-matched acquirers is more likely to generate interest from multiple parties, creating auction conditions so sellers can choose the best fit, terms and price TENACITY – acquirers are busy and may miss the opportunity. Contact info may be out of date, they may be in the thick of doing a complex acquisition. Good advisors keep going until we can speak to someone and get them to the table ORGANISATION – busy people means meetings sometimes need re-arranging, follow-up info needs sending, third parties need coordinating (eg lenders, tax specialists, regulators) MOMENTUM – interest dwindles with late follow-up, missing info, or sloppy scheduling. No owner wants to be in a situation where they are about to agree a deal only for a new bidder to pop up too late in the process. Energy and drive are important soft skills to keep timescales aligned DEFENSIBILITY – key financials and forecasts will be interrogated, so owners need to be confident they are accurate and achievable. Acquirers have their boards to satisfy, while owners will want to reduce price-chipping in the final negotiations LEVERAGE – faced with much larger acquirers, owner-directors need advisors to put their business on an equal footing. Competing bidders helps here, but honest advice on when to push and when to concede also matters EMPATHY – M&A is stressful, so both sides need calm heads who can overcome tense moments to get a deal over the line for mutual benefit. After all, consensus and compromise is the key to negotiating. Good advisors will be able to demonstrate most or all of these skills. Hopefully, the above can act as a checklist to help shareholders set the right criteria when choosing an M&A firm to engage. Have we missed anything? Let us know in the comments.

Hiring any advisor is a tricky decision for business leaders. Service levels aren’t always clear, outcomes can be vague, and there’s always that nagging feeling that you may be paying someone to tell you things you already know. The M&A profession is no different. There are thousands of firms to choose from - business brokers, high street accountants, regional boutiques, professional services brands, or investment banks. Few entrepreneurs have previous experience of going through a business sale, so the questions you ask when choosing an advisor are critical. Remember, you’ve decided you want to sell your business. The goal is to actually COMPLETE on a sale – preferably for maximum value. Accreditations, awards, previous sector experience, fees don’t really indicate whether you will get a deal over the line. Skills matter more. To optimise your chances of successfully doing a deal that works for everyone, sellers and acquirers tell us these they value these skillsets most. ARTICULATION – a slick company prospectus presenting key facts and company USPs is more likely to get read than a tedious 90-page dossier ORIGINALITY – a large list of well-matched acquirers is more likely to generate interest from multiple parties, creating auction conditions so sellers can choose the best fit, terms and price TENACITY – acquirers are busy and may miss the opportunity. Contact info may be out of date, they may be in the thick of doing a complex acquisition. Good advisors keep going until we can speak to someone and get them to the table ORGANISATION – busy people means meetings sometimes need re-arranging, follow-up info needs sending, third parties need coordinating (eg lenders, tax specialists, regulators) MOMENTUM – interest dwindles with late follow-up, missing info, or sloppy scheduling. No owner wants to be in a situation where they are about to agree a deal only for a new bidder to pop up too late in the process. Energy and drive are important soft skills to keep timescales aligned DEFENSIBILITY – key financials and forecasts will be interrogated, so owners need to be confident they are accurate and achievable. Acquirers have their boards to satisfy, while owners will want to reduce price-chipping in the final negotiations LEVERAGE – faced with much larger acquirers, owner-directors need advisors to put their business on an equal footing. Competing bidders helps here, but honest advice on when to push and when to concede also matters EMPATHY – M&A is stressful, so both sides need calm heads who can overcome tense moments to get a deal over the line for mutual benefit. After all, consensus and compromise is the key to negotiating. Good advisors will be able to demonstrate most or all of these skills. Hopefully, the above can act as a checklist to help shareholders set the right criteria when choosing an M&A firm to engage. Have we missed anything? Let us know in the comments below. 👇

Hiring any advisor is a tricky decision for business leaders. Service levels aren’t always clear, outcomes can be vague, and there’s always that nagging feeling that you may be paying someone to tell you things you already know. The M&A profession is no different. There are thousands of firms to choose from - business brokers, high street accountants, regional boutiques, professional services brands, or investment banks. Few entrepreneurs have previous experience of going through a business sale, so the questions you ask when choosing an advisor are critical. Remember, you’ve decided you want to sell your business. The goal is to actually COMPLETE on a sale – preferably for maximum value. Accreditations, awards, previous sector experience, fees don’t really indicate whether you will get a deal over the line. Skills matter more. To optimise your chances of successfully doing a deal that works for everyone, sellers and acquirers tell us these they value these skillsets most. 📣 ARTICULATION – a slick company prospectus presenting key facts and company USPs is more likely to get read than a tedious 90-page dossier 🌟 ORIGINALITY – a large list of well-matched acquirers is more likely to generate interest from multiple parties, creating auction conditions so sellers can choose the best fit, terms and price 💪 TENACITY – acquirers are busy and may miss the opportunity. Contact info may be out of date, they may be in the thick of doing a complex acquisition. Good advisors keep going until we can speak to someone and get them to the table ☑ ORGANISATION – busy people means meetings sometimes need re-arranging, follow-up info needs sending, third parties need coordinating (eg lenders, tax specialists, regulators) 🚀 MOMENTUM – interest dwindles with late follow-up, missing info, or sloppy scheduling. No owner wants to be in a situation where they are about to agree a deal only for a new bidder to pop up too late in the process. Energy and drive are important soft skills to keep timescales aligned ⚔ DEFENSIBILITY – key financials and forecasts will be interrogated, so owners need to be confident they are accurate and achievable. Acquirers have their boards to satisfy, while owners will want to reduce price-chipping in the final negotiations 🥊 LEVERAGE – faced with much larger acquirers, owner-directors need advisors to put their business on an equal footing. Competing bidders helps here, but honest advice on when to push and when to concede also matters 🤬 EMPATHY – M&A is stressful, so both sides need calm heads who can overcome tense moments to get a deal over the line for mutual benefit. After all, consensus and compromise is the key to negotiating. Good advisors will be able to demonstrate most or all of these skills. Hopefully, the above can act as a checklist to help shareholders set the right criteria when choosing an M&A firm to engage. Have we missed anything? Let us know in the comments below. 👇

@BusinessSaleBasics - Does It Matter What M&A Advisor Helps You Sell Your Business? Some people think that M&A advisors are a bit like estate agents and you will get the house (or in this case, a business) sold with whoever you go with so optimising the fee is the most important thing. Actually, nothing could be further from the truth as M&A Advisors (and brokers) vary greatly. It has to be remembered that we are in a sector where 80% of businesses that go up for sale, never sell...75% of transactions that do make it to the Heads of Terms stage, never make it to closing...and some of the biggest UK small business brokerages that charge upfront fees sell less than 10% of their business. So the M&A advisor that a business owner chooses really matters! Why Transworld M&A...we have boiled it down to a few simple points: - We are the largest in the world in the small business space with over 250 offices globally and 15 in the UK and been going for over 40 years. Longevity and growth mean that we are doing something right, across continents for a long period of time. - As we have size/scale, we have a robust international buyer search operation both in the UK and the US that does over 5,000 reachouts a week in the UK to potential buyers...just to make sure we find that right new owner who might just be the needle in the haystack. - We don't charge upfront fees, we get paid the day our client does. What this does is create an entire culture around getting deals to the closing table and not telling them what they want to hear to get an upfront fee when we first meet them. That statistic of 75% failure rate after heads of terms? My office has reversed that and gets over 70% to the closing table. - Experienced/Certified/Well Trained Advisors - We don't have salespeople and most of our advisors are seasoned professionals, many with appropriate professional qualifications. I personally was a Certified Public Account with Ernst & Young (similar to a Chartered Accountant in the UK) as well as am a Certified M&A Advisor with AMAA and business valuation. - We Really Care - Selling a business is the biggest thing a client may do next to getting married and having kids. It is often part of a major life transition and taking care of all the people involved (i.e. employees/customers) is critical. We consider it a vocation and a privilege to be able to assist people at this juncture of their lives. So...it really does matter. If you are thinking of selling or just want to chat, please get in touch. You can also check out my book for new business sellers (Selling Your Business - A Quick Reference Guide), a link is on my LinkedIn profile page. #businesssales #businessvaluation #mergerandacquistions

Everyone has their own gifts and goals. Too many business owners do not look to raise a team that builds. The people you synergize with especially from the beginning and during growth are the ones who will celebrate the wins, put in the time, and help you lift your idea into a true business. Don’t look to your children to take over unless they show up, come on board and really want it. They may be like you and have their own idea to blossom into a big reality. Meanwhile you have inspired them, shown them a work ethic and if you are looking at those employees that have been on your journey with you are the people who will allow you to have work life balance. They might even be your successor. Succession and Exit Strategy should be considered from day 1 by planning for your own salary and fringe benefit package and that of your supportive employees. Building value is more than sales numbers. #forwardthinking #strategicminded #smallbusinessowner

“I don’t need to worry about selling my business,” he said, then added . . . “Daniel is going to take over the business.” His son, Dan, is 4 years old. (Real conversation from last week.) It seems goofy when you see it written down like that, doesn’t it? Yet, a remarkable number of small business owners think their kid . . . . . . is their exit plan. Why is that a problem? -- Guess what a banker is going to say to Daniel when he says, “I want to buy Dad’s business.” The banker is going to say, “Great, let’s start by taking a look at the financials for the last three years.” -- A potential buyer is not an exit plan. (Read that last sentence again if you’re a small business owner.) Knowing who the next owner of your business might be does not prepare you to be able to exit your business successfully. -- How can that be? A buyer/successor is an important part of the exit equation, isn't it? OK, so let’s say Daniel grows up, and decides he wants to own the business. Or say a competitor down the street says, “I’ll buy the business when you’re ready to sell.” Maybe you’ve had business brokers approach you and say, “I have a buyer for your business.” So what? A potential buyer is meaningless . . . if the business can’t be bought. -- The main problem with assuming your kid (or any other buyer) is going to take over your business, is that it makes owners lazy about their exit. Owners start to believe they’ve got that “exit thing” figured out. “Daniel will take over the business.” But Daniel isn’t the answer. Neither is some other potential buyer. It’s about being able to answer “yes” to three simple questions . . . -- Are your results desirable? (You need to create financial results that are attractive.) Can a buyer duplicate your results? (Results need to be generated by a strong team and systems, not only by the owner.) Can you document your results? (You must be able to prove the results – to a buyer, and to their banker. You need to keep clean records.) -- Why are those question key? Because every potential buyer needs those things in a business if they are going to be able to buy it. Including your kid. -- Predicting the future for your four-year-old is a fantasy filled with dangers. “Mommy, why do the other kids get to make their own career decisions?” “Oh, honey, because their mommies didn’t start their own business. Now hand me that invoice.” But if that’s your dream, at least ensure that you create a business that your kid (or another buyer) will be able to buy when the time comes. You owe that to your kid . . . and yourself. #business #smallbusiness #entrepreneurship

SME's need to take ownership of this issue and seek help and leave their EGO at the door 🙏🙏 The majority of business sales occur as a result of a health event or a competitor buyout - in both these instances, the business owner is not prepared and risks losing $'s as a result of little to no negotiation power. 🤦♂️😖 If you need to sell now, find a good business broker 👌👌 If you have at least a 12-month runway to get your business ready for sale, our The Value Builder System™ is a good option to at least explore ✔✔