• Experienced and capable management teams . Strong , decentralized management teams are valuable assets because it proves the business is not overly dependent on one individual . As you evaluate your management team structure , consider having agreements and incentives in place to help keep them on board with the company post-sale .
• Proprietary products and services . Companies with proprietary products or services always appeal to potential buyers because they provide a barrier to competition and are poised for future growth . Continually reinvest in property , the plant , equipment , and research and development related your proprietary models to build upon your competitive advantage . encourage you to proceed with caution and work with an M & A advisor to help you determine whether the offer is serious and if selling now is in your best interest . The most important thing to be aware of is to never , ever sign a letter of intent before discussing it with your trusted business advisors .
Here to Help If you are considering selling your business soon , rely on our investment bankers to assist in preparing it for sale to maximize value . For more information , contact us today . ■
CAPITAL ADVISORS
• Future growth potential . Understand ways your business could grow if you had unlimited capital and resources , and demonstrate those capabilities . Create a business growth plan with an investor ’ s mindset and highlight how your company plans to generate revenue and build the business within the next two to five years .
• Overall operations . Today ’ s buyers are bringing a more integrated approach to valuing a business . Technology and cybersecurity measures are being more heavily weighed , so have documentation ready to highlight how the company is protected both financially and operationally , how often these infrastructures are evaluated and associated costs . With a turbulent job market , buyers will want to understand employee retention efforts , if roles and responsibilities are scalable , and details related to benefits and compensation . On the compliance side , be sure your business can support its regulatory and tax compliance efforts . As you work with your CPA , we encourage you to meet with them regularly as tax returns are filed or audit engagements are completed to understand potential risks or capitalize on opportunities .
Handling Unsolicited Offers An unsolicited offer is an offer you receive when your business is not actively on the market and is common in the world of mergers and acquisitions ( M & A ). If a buyer approaches you with an offer , we strongly
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