Value Acceleration

Valuation, Growth Advisory, Holistic Exit Planning, M&A--"Grow With An Exit In Mind"

[Value Acceleration @ValueXcel]

Interested in more information on M&A and value creation? Subscribe to my substack at https://t.co/3LdsdKEQDQ or visit https://t.co/nDvc6C9rLq

[Value Acceleration @ValueXcel]

When selling your business, going alone isn't a great option. Build an exit team that works for you and gives you a sounding board.

https://t.co/w44UrJBvRs

[Value Acceleration @ValueXcel]

Lots of good points in this article, but I'll point out that as part of a grow-and-exit strategy, investing in that growth can produce an ROI in multiples of your investment (think finance, ops, sales, infrastructure).

https://t.co/9i7kMvPHJu

[Value Acceleration @ValueXcel]

Earnouts can be both a blessing and a curse. Pro: Get higher headline sales price and maybe defer capital gains.

Cons: Poor structure/wording can create tax problems (taxed at full income) and potential for dispute.

https://t.co/hmjtDpAa30

[Value Acceleration @ValueXcel]

While being debt free may be a point of pride, prudent use of debt by an organization may be valuable to fuel growth.

https://t.co/zT6HM4m01f

[Value Acceleration @ValueXcel]

(from M&A Source, The Bridge)

Many factors influence the multiple for your business. For each buyer, the weight they place on a given factor may differ. Thus, there is a range of FMV for your business on the real market.

[Value Acceleration @ValueXcel]

Idle cash is unproductive and may be better used in the hands of shareholders or re-invested in the business (CAPEX, paying down debt, funding R&D, funding growth working capital).

https://t.co/FuY7v92hFJ

[Value Acceleration @ValueXcel]

Wanting to sell and being ready to sell are two different states of being. All of the eight factors listed in this article are important but I would personally look at 2 and 3, since these are deal killers.

https://t.co/sVuO9P2SAq

[Value Acceleration @ValueXcel]

Why are you selling your business.

Write down your reasons and your objectives for a transition on your terms.

https://t.co/1HykUZ8R9t

[Shaughnessy Group @shaughnessygrp]

Exit Ready: Sell Your Canadian Business the Right Way

Planning to exit your business in the next 2–5 years? Learn how to protect your value and avoid costly mistakes.

📍 IG Wealth Management Richmond Hill Office

Secure your seat: https://t.co/13ZpvXyfEc

#BusinessExit

[Value Acceleration @ValueXcel]

Trade off #1: If you are ready, don't find new reasons to delay. If you are not ready, start planning today.

https://t.co/AI2F8zvME4

[Value Acceleration @ValueXcel]

BATNA is a good reason to use a formal process to sell your business. Create those alternatives.

[Value Acceleration @ValueXcel]

BATNA is your Best Alternative To a Negotiated Agreement. It's your leverage in a negotiation and a guise to what is the best offer you have on the table. It's hard to know what is a good deal if there are no other viable alternatives.

https://t.co/zUwTaFFnHN

[Value Acceleration @ValueXcel]

Post-exit surprises that could have been avoided with proper planning:

-tax
-working capital
-earnouts
-transitions
-family
-personal identity

https://t.co/3ejaePf5Ow

[Value Acceleration @ValueXcel]

If you are the type of person who doesn't really know what you want to do next, and the thought of letting go is very difficult, rollover equity could be beneficial both from a personal standpoint and financially,

https://t.co/PPlyXPZ2vZ

[Value Acceleration @ValueXcel]

Please take a look at this interview between Brian Crombie, Karl E. Sigerist, Jr., ICD.D , and Mark Borkowski. They discuss the newly released book “Selling Your Canadian Business”.

https://t.co/tUz319Jwqd

[Value Acceleration @ValueXcel]

Buy-sell agreements should have clear mechanisms to pricing the buy-in and buy-out of shares.

https://t.co/50ziua8S0b

[Value Acceleration @ValueXcel]

Why is having a moat around your business important? What types of moats are there?

https://t.co/rKU924T321

[Value Acceleration @ValueXcel]

An unsolicited offer can seem great at first, but if you haven't done the proper exit planning, how do you know if this an optimal exit or a bad deal?

https://t.co/t8B6D3CBt0

[Value Acceleration @ValueXcel]

Buyers may not have the same financial power as PE firms, but they do have certain advantages. But, they should take care to approach sellers so they can benefit from those advantages and win bids.

https://t.co/YRyIwzAQ4C

[Value Acceleration @ValueXcel]

Trade Off #2--When selling a business, the consideration you receive may not come all at once. Consider earn-outs, VTB notes, and roll-over equity.

https://t.co/s52J8mGx63