If you live in Silicon Valley and you are fortunate to own a home, several times a week you will receive a flyer in the mail or the front door offering to buy your house. The flyer will show you all of the houses in the neighborhood that sold at astronomical levels with time on the market measured in microseconds. It’s easy to look at this info and imagine what you do with all the money you would receive if you sold your house. You ask yourself, “Do I sell?”
The same thing can happen if you are the CEO or owner of a company. You are working, the company is going great, and customers love you. Then it happens. You get a call. The person on the other end asks if you have considered selling your company and that person is a buyer looking to make acquisitions. What do you do now?
Stop, take a deep breath, and think. Ask yourself a few key questions.
What is going on in my industry or in the world that prompted this call? You are successful at running your business so you have a good handle on what customers and competitors are doing. Have recent changes in the market, the technology, or the economy generated some things that could impact your business positively or negatively? Returning to the house example, what’s going on in my neighborhood?
At what stage is my business? Is the business growing, flat, or declining? Are those recent events changing the way my customers and prospects see my company? What do my employees and other stakeholders think? Maybe market conditions, technology, customers, or other items are indicating that a disruption is coming. Is my house desirable enough that someone would want it?
Where can I find help? Chances are you can’t answer all these questions. You need some help. You are running a business that you think will continue for many years. That business needs your focus. This is where a good merger and acquisition (M&A) advisor can step in. If you have ever bought or sold a house, you know how complex the process can be. You also know that you probably can’t or shouldn’t try to manage the process by yourself. Not only can too many things go wrong, you may not get the full value you expect or deserve.
What do I do next? If the idea of listening to a pitch to sell your business is even a little interesting, ask for help. A M&A advisor will help you understand the process, the risks, the rewards, and the other factors you need to consider. More importantly, the M&A advisors can manage the process while you continue to run your business.
Responding to an incoming call to sell your company can be the start of a life-changing event. The right M&A advisor can help you respond to make the most of the call.
Getting those calls? Interested in learning more? Contact Sival Advisors to learn how to navigate the sales process to make the most of your efforts.