Common-Sense M&A Valuation Improvements
During the current economic climate, there have been many articles about improving a business for sales through an M&A transaction or IPO. For most small businesses an IPO is not the best "exit strategy".
Many companies and private equity firms are in a buying mood due to a desire to acquire distressed assets at bargain prices. As a result, companies anticipating an M&A transaction should provide time to get their house in order.
There are several steps that must be taken to improve company value for the owner and investors
The following suggestions have been very helpful and effective for maximizing value:
1) Put your financials in order and think about what the buyer wants.
2) Clearly articulate near term goals.
3) Fill out your key management team with seasoned professionals.
4) Present a strong case for unexploited opportunities.
5) Demonstrate your ability to leverage financial strength.
6) Hire an M&A expert investment banker.
7) Get the best accountant available.
8) Find an M&A attorney, not your current legal consul.
9) Document key relationships.
10) Review Sarbanes-Oxley requirements.
See further comments on these points at "Updates" page.
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