It is a simple business, so how hard can it be to sell it, right? The truth is, all the blood sweat and tears you have invested in your business over the years could be wasted if you do not maximize the value when the time comes to sell. Here are just five reasons why you absolutely need an M&A advisor:
If you, as a business owner are selling your own business, it is most likely a one-off event for you, whereas many of the buyers are ‘serial acquirers’. They have an unfair advantage in terms of experience, tactics and negotiating skills.
K-2 Partners will help shift the advantage back in your favor. We have extensive industry-based experience and negotiate deals on a full time basis. We are in touch with industry trends. We know the deal process. We know the pitfalls and more importantly, we know how to avoid them. We have been in some pretty complex negotiations over the years and as a result, we are a tough group to bluff.
Increased competition = increased value
Experienced buyers love to deal directly with a seller and for good reason. They know that the seller has no basis for comparison for valuation and therefore in all likelihood, they will be able to secure the deal for a lower price than if they were competing with other buyers for the same business.
The best way, by far, is to proactively run a competitive formal bid process, with multiple prospective buyers competing with each other. However, that takes experience, specialized knowledge and time. Let K-2 Partners professionally manage the process and generate the highest deal value for you. Experience shows that the additional value gained, significantly exceeds the cost of engaging a professional.
It means that when you engage us to represent you in the sale of your business, we will be able to identify the hidden potential, including suggesting acceptable adjustments to your current and future results, advising you on how to best present the business for sale and providing helpful insights into short-term improvements that could further increase the valuation. We can also show potential buyers how to maximize their investment, which further improves the salability of your business.
Greater deal focus
In a direct deal, the buyer can make the selling process look deceptively simple, asking you for basic financials, some operating data and little more, before offering to provide a valuation.
However, to achieve maximum value when selling a business requires significantly more effort, time and deal skills than most business operators have.
As a business owner, you have a business to run, daily operational issues to deal with and customers to keep happy. Therefore you don’t have time to dedicate to the deal, without negatively impacting your business.
With K-2 Partners managing the deal process, you are free to continue running your business at its peak, thus preserving its value throughout the sale process.
Objectivity without emotion
There are lots of things that can and often do, go wrong in the course of a transaction. Buyers and sellers see things differently. A potential buyer may not share your vision; and you may not want to be told how your business should run. In a direct deal, such things often lead to conflict, strain the relationship and perhaps even derail the deal.
Using K-2 Partners allows you to remain at an arm’s length from the deal when negotiations get tricky. We maintain a cool head and a level of detachment, which ensures that emotions and personalities don’t get in the way of the transaction.
In dealing directly with a professional buyer, a business owner is at a distinct disadvantage when it comes to deal negotiation. Many companies have dedicated in-house M&A staff who are skilled negotiators that know when to turn on the pressure. Frankly, it is like an amateur taking on a team of pros. Since the seller’s goal is to get the highest price possible, whereas a buyer wants to pay as little as possible, a direct deal may never close.
When you engage K-2 Partners as your trusted M&A advisor, you are adding real pros to your team. We are proud of the results we have achieved on behalf of our clients and realize that our best reference is a satisfied customer. And since we are in this business for the long haul, we conduct all of our dealings with the utmost integrity and professionalism. We highly value our relationships throughout the industry, be they buyers, sellers or acquaintances.