![]() Sometimes our vision about the future is blurry because we aren’t considering the whole picture but only parts of it. When a business owner says it’s time to sell, I ask, “How fast do you want to be out?” The answer I hear most is, “Yesterday.” But sellers underestimate how long the process takes. The company was recently sold by Diane Rush, owner and president, to Pillar Imaging and its leader Dr. Hampshire Controls has a bright future with new ownership. NH-Based Techinical Manufacturing Company Sold Nearly every owner we speak to is out straight. Sometimes the economic picture on the news seems inconsistent with what is happening for many business owners. Perception vs Reality with Small Businesses De-risk your company as much as possible. The takeaway for business owners: Get back to basics. ![]() to DelCam Holdings in 2020.the company has grown substantially, doubling employment and adding capacity to boost future prod Manufacturer Sold and New Owner Expands ItīTS served as advisor in the sale of PlasTech Machining Fabrication, Inc. Give us a call and we can cover the bases with you more closely. Shark Tank is fun to observe, but it also raises some points to keep in mind. We believe in developing a market for the company being sold, establishing a level playing field for buyers via good information and a fair schedule, so multiple parties can review the opportunity and generate offers. A quick closing can be accomplished.īecause an M&A process was used, managed by a good advisor, the case at the center of the exercise provided owners options.Īre you your best advisor? We know owners who thought they could get the best deal on their own only working with one buyer, usually one that approached them directly. Having the “house in order” makes diligence more efficient. The highest number may not be the best value. The range of prices generated by the Shark Tank demonstrates how the same company, reviewed by multiple buyers, can provide owners a vast range of prices and terms. In the exercise, the offers varied wildly! The numbers were millions apart. Having a good M&A advisor skilled at communicating the opportunity makes a difference. A good story, told poorly, is not effective. The company story and presentation reflected in the CIM is the hook that gets buyers interested. In this case, it was all theoretical but based on reality. It generally is a 20- to 30-page presentation prepared by the advisor. This is known as the CIM, The Book, the business summary. The Shark Tank “bids” for the company resulted from review of data and information presented by the M&A Broker in the confidential information memorandum. This results from paying attention and focusing on net earnings. But assets that produce revenues and profits are critical. Profits are the result of a good operation. This comes by developing systems, processes, equipment, and a management team that will support the enterprise in years ahead. Sometimes owners are so focused on setting up an enterprise that supports their lifestyles that they ignore preparing for the future. The company was large enough, and managed well enough, to generate enough profit for a buyer to want it. It demonstrates belief that the company can grow. Why is this important? It helps a buyer feel confident betting on the future. While the owner wanted to cash out, he had fostered a team that ran the operation. The team that had helped build the company was going to roll their capital stake in the enterprise – real or perceived – into the new entity and the new ownership. The best values offered by the Shark participants resulted from confidence in the company because a management team would be remaining post transaction. The case study involved a midwest enterprise manufacturing a product from recycled plastics. It also showed in detail how companies are reviewed by buyers. The exercise and discussion showed that the M&A process we use to sell companies can be effective. ![]() Each analyzed the information presented and came up with a hypothetical indication of interest and value they would offer for the business. One of my colleagues in Cornerstone Alliance was front and center in a recent Shark Tank exercise.Ī business that had been sold was put in front of four potential buyer groups. < Return to News Articles Good Ideas From Shark Tank Deal ![]()
0 Comments
Leave a Reply. |