Increasing Buyer Demand for Successful North Carolina Businesses

Increasing Buyer Demand for Successful Southeast US Businesses

Charlotte - Traditionally, a business owner does not contact a merger and acquisition firm until immediately prior to selling the business. In certain circumstances, as with the case of divorce or failing health, this is unavoidable and a competent business intermediary firm will be able to assist with a timely valuation and sale of the enterprise. For the majority of cases, it is critical to engage a business intermediary early. The process of selling a closely held business is very complex with many variables and it is important to seek expert advice for your succession planning. By developing a formal business exit plan and setting out a specific timetable of actions to be taken, you will have a clear plan of action and know exactly when and how you will be leaving the business. Understanding the worth of one’s business and how that value is derived is extremely important. In some cases, there are minor changes that an owner can make that would dramatically increase the value of the business. Methodical planning coupled with a proven merger and acquisition process can produce thousands of incremental dollars upon final sale of the enterprise.

Over the last two decades, I have met some incredibly talented, intelligent, and successful entrepreneurs and have a true appreciation for the enormous amount of time, work and sweat equity that has been devoted to building their closely held businesses. The majority of these owners were able to maximize the market value of their business upon sale through proactively adopting an exit strategy. Historically, a business owner sells only one business in their lifetime and it is the two or three years prior to selling the business that are the most critical. Ensuring that the proper structure is in place and that the financials are organized in a format which compliments the business enterprise and maximizes the value of the company, is a process that, when adopted early, can offer significant financial benefits upon the sale.

Advance planning in a business sale provides the ultimate amount of control for the owner and, more often than not, the highest market value. Engaging a competent business intermediary who brings an experienced exit planning and transaction team will provide both peace of mind and financial rewards when the ultimate day arrives to sell the business.

About the Author:
Michael Fekkes is a Senior Broker at ENLIGN Business Brokers. Michael is a Certified Business Intermediary CBI®, a member of the International Business Brokers Association IBBA®, as well as a former business owner. He can be reached at 910.691.2202 or mfekkes@enlign.com. ENLIGN Business Brokers (www.enlign.com) is a Professional Services Firm serving the Southeast that is headquartered in Raleigh, NC with regional offices in Nashville, TN and Atlanta, GA. providing business intermediary services ranging from valuation and sale to exit & succession planning strategies.
Posted on:
Wednesday, July 28, 2010 10:07 AM