Friday, October 24, 2014

3 tips for selling your company - South Florida Business Journal

Oct 22, 2014, 11:20am EDT

Investment banker Bob Barrett thinks Florida is behind other parts of the country when it comes to mergers and acquisitions.
"Florida is the third-largest state, but ranked 11th in sales of companies," he said. "That statistic says it all."
Barrett is the co-founder of Fort Lauderdale's Cross Keys Capital, an investment bank that specializes in mid-market mergers and acquisitions. His investment banking experience stretches back 44 years and includes work for Merrill Lynch and Morgan Stanley.
Here are his tips for South Florida entrepreneurs looking to sell their companies:
  • Always be ready.
Companies should have a valuation done before they're approached by potential buyers — not after, Barrett said.
It's also wise to have a Confidential Information Memorandum prepared. That document gives potential buyers key information: It outlines a business' operations, its industry and its financial projections.
  • If the market is passing around the candy bowl, take a few pieces.
When the market is doing well, it's probably time to sell, Barrett said.
"Why take 20 years of risk when you can sell the company now at much less risk and with certainty [of the sale price]?" he said.
  • Be realistic.
When business owners are looking for a valuation, they often come to Barrett with a set price in mind. Sometimes they're in for a rude surprise.
"As everyone knows, most business owners think their own company, their baby, is worth a fortune," he said. "Sometimes it is and sometimes it isn't. It's the investment banker's job to get the client to achieve reality in terms of pricing."
Celia Ampel covers technology, startups, venture capital and angel investment. Stay on top of the latest venture news with our free daily newsletter.
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3 tips for selling your company - South Florida Business Journal:



For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at info@buysellflbiz.com or 239.738.6227. Also, visit our Florida Business Exchange website at www.fbxbrokers.com and my personal website at www.buysellflbiz.com.

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