Welcome to our Early March newsletter - Spring is just around the corner!
Do you know what factors help the sale of a business move from offer to closing? Read on to learn a few secrets for successful business sales.
If you're thinking about selling your company or buying another business, we're here to help. We can also help you optimize your business for an eventual sale or merger. | |
We specialize in information technology, environmental, and other technical service companies. But we have experience and work in other industries such as construction, manufacturing, and publishing. As always, we welcome your inquiries and referrals.
Sincerely,
John Austin & Bob Dale
Austin Dale Group
512-327-0427 |
Secrets for Successful Business Sales
The buyer and seller should be in agreement from the beginning. In many transactions, the buyer and seller weren't really in agreement from the start, or didn't understand the terms of the sale. They must both be comfortable with the terms and structure of the sale or it won't work. Misunderstandings force many deals to fall apart.
Both sides must be patient. Putting a deal together and closing it takes time. It's important that both buyer and seller make their advisors stay on schedule. The attorneys involved should be told from the outset by buyer and seller that unless the deal is illegal or unethical, they want it to work.
No one likes surprises. Everything should be revealed from the start. Buyers understand that nothing is perfect, and if the minuses are communicated to them out front, the surprises are eliminated. If not exposed initially, the minuses will be exposed sooner or later.
Buyer and seller must feel like they both got a good deal. If all parties to the transaction feel good about the deal, the closing is a mere formality. Both parties should feel comfortable with the terms and conditions as well as the chemistry between the parties That's the sign of a win-win transaction.
The real secret! The real secret is tied up in one word - listen. Everyone involved in the deal must listen. No one can win on every point. By listening, both sides will understand what is really important to the other. Listening creates a spirit of cooperation and allows both sides to work together to make the deal work. After all, the buyer and seller wouldn't be involved if the seller wasn't interested in selling and if the buyer didn't like the business well enough to attempt to buy it. |
Corporate Growth through Strategic Acquisition - part 12 in a 13-part series.
There are several categories of strategic acquisition that can produce outstanding results with effective integration of the businesses. Many acquisitions actually have elements from several categories:
12. ACQUISITION TO REMOVE BARRIERS TO ENTRY - An example of this strategy occurred when a large commercial information technology consulting firm acquired a technology consulting firm that specializes in the Federal Government. The larger IT firm had valuable expertise and best practices that were transferable to government business if they could break the code of the vendor approval process. After trying to do it themselves, they simply acquired a firm that had an established presence. They were able to bring their full capabilities from the commercial side to effectively increase their newly acquired government business.
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Free Webinar:
Ten Ways to Increase the Value of Your Business
If you own a business, you're already thinking about how to increase the value of your company, or you know that you should be. In our next webinar we'll discuss ten things that you can do - starting now - to increase your company value, whether you're planning to sell the business, leave it to your kids, or you're not sure yet.
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Private Equity IT Activity on the Rise
129 Information Technology companies were involved in private equity deals through mid-October 2010. With 115 deals completed and 14 announced but still in play, 2010 was slightly lagging behind 2009, which had 166 deals for the year. During the 3rd quarter, the tech sector leaped to the third largest industry for PE investment, up from fifth for the first half of this year. The Software sector continues to attract the most deals with 50.4% of the total IT deal flow in 2010, up 3.7% from 2009. (Source: Pitchbook News) |
Why Use a Business Intermediary?
Even during times when buyers are plentiful, sellers need help to find them and to identify those who are qualified and not time-wasters. This help comes from the business intermediary. He or she can help weed out the tire-kickers and those who aren't ready to take the leap of faith required for this major decision.
In addition, the business intermediary not only helps match the right buyer with the right business, but also educates the buyer and seller in the business transaction process, alleviating concerns and keeping the transaction moving forward. |
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Contact Us
Austin Dale Group
P.O. Box 162727
Austin, Texas 78716-2727
512-327-0427
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