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Why Delays Can Be Costly For M&A Transactions

By Generational Equity

Delays

Recently, the media in New England reported the "retirement sale" for a company that had been in business for 235 years. Sadly, the firm's owners were closing the business because they could not find someone to buy the company.

"Timing is a key component in the ability to sell a business for maximum value," said Terry Johnson, Chief Revenue and Strategy Officer here at Generational Equity.

"A business forced into closing its doors may have had much greater value if it had been positioned for sale by a professional at the right time. Timing is everything, and I've never met a business owner that regretted starting the process too early."

Johnson added, "Too many people wait to begin the exit planning process until they are forced due to failing health, industry upheaval, and a myriad of other unforeseen circumstances. The degree of difficulty increases exponentially in these situations, and the net result is often unfavorable."

The Importance of Good Timing for M&A Activity

What makes an optimal time to sell?

  • A strong economy
  • Low interest rates
  • Favorable tax environment
  • Active buyers with ample capital to invest
  • Industry consolidation
  • A business with a substantial opportunity to grow with the help of additional capital or experienced management

"A business must be buyer ready in order to take advantage of positive timing conditions," noted Johnson. "This means following the multi-step process that Generational Equity directs for all of our clients."

One key step is creating professional documentation that demonstrates the buyer-readiness of the company. Because of this, having an experienced M&A advisor by your side is vital.

"A proper exit plan is not something that is done overnight," said Johnson. "A business owner should initiate the process far in advance of their target exit date.”

“For millions of baby boomer business owners now reaching retirement age, selling at the right time may be the difference between long-term financial struggles versus a comfortable retirement. The stakes are high, and my advice to business owners is to start the process early."

Don’t Delay – Contact Generational Equity for M&A Advice Today

If you want to avoid the delays in M&A activity that could cost you the optimal exit from your business, reach out to Generational Equity’s experienced advisors today. Through our complimentary executive M&A conferences, you’ll understand why selling a business at the ideal time helps ensure that money won’t be left on the table when you depart.

Contact our team for more information on attending a conference in your area, or to arrange a meeting with our skilled M&A advisors. Quick, while time is on your side!

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I wanted to write you a quick letter to express our appreciation and our delight on the outcome of helping us through the process of our recent sale. We are very happy with the end result, and are very happy to be able to move forward with all of our future growth plans.
Terry D. Wickman, President, Keytroller
We are very happy with the end result, and are very happy to be able to move forward with all of our future growth plans.
Rick Nowak, President/CEO, Kurz Electric Solutions, Inc.
Michael worked tirelessly, He followed every lead meticulously and urgently to make sure nothing was missed.
Robert Evans, President and CEO of Mealtracker Dietary Software
We were happy to see the interest in our company and what we cherished has not just a valuable company but an important company to the communities we served in.
Larry Moore, Owner, A Company Portable Restrooms
The process was much more involved than I expected and your help, experience and advice was a big factor in making the negotiations go as smoothly as possible.
Terry D. Wickman, President, Keytroller
I couldn’t have asked for a better team than Michael and Deborah. We couldn’t have done it without them.
Robert Evans, President and CEO of Mealtracker Dietary Software
Thank you again for all your guidance and support. Any company will achieve what they intend, if they have you on their team!
Rick Nowak, President/CEO, Kurz Electric Solutions, Inc.
We knew it would be a difficult task to have someone really understand our business and our market, prior to researching a possible buyer, so it was imperative that we found someone of your caliber, with definite proven experience in this area.
Rick Nowak, President/CEO, Kurz Electric Solutions, Inc.
Tom Staszak is one of the most professional people I have dealt with in my last forty years of business. You’ve got a great group of people and you have built a truly professional organization.
Michael J Polarek, President, Paragon Packaging
Generational Equity educated and informed us – so that we could be on the upside of a good decision (to sell).
Bil MacLeslie, CEO, ipHouse
The help you provided us during each step of this process made us feel very comfortable and confident we were selecting the right approach to transition our Company.
Andy Graham, Vice President, Modern Heating & Plumbing
We will highly recommend Generational Equity and Musa Jagne to any business owner about to embark on the same process.
Karen S. Williams, CFO, BW Manufacturing
We thank you Eric and Generational Equity making our dream come true.
Larry Moore, Owner, A Company Portable Restrooms
We are extremely pleased with the way Generational Equity handled the sale of our company. Your associates, Tom and Chris, did an outstanding job of getting us (me) through the process.
Michael J Polarek, President, Paragon Packaging
Your wisdom and experience were invaluable to me during this once-in-a-lifetime transaction.
Ralph Noblin, President of Noblin & Associates
I quickly recognized that Don was working for Sharpe Mixers above all else, and held our interests above others.
Jay Dinnison, Owner of Sharpe Mixers
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Bil MacLeslie, CEO, ipHouse
Thanks again Phil and feel free to have a future client call me if they would like a referral. You are a true professional!
Andy Graham, Vice President, Modern Heating & Plumbing
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Karen S. Williams, CFO, BW Manufacturing
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Jay Dinnison, Owner of Sharpe Mixers
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Bil MacLeslie, CEO, ipHouse