Creating a successful exit strategy isn’t just about the numbers

"In October 2012, Ernst & Young's M&A tracker revealed a slowdown in the market. It notes that due to the current economic environment businesses are taking a very cautious approach to deals. However, there are ways a firm can ensure it is as attractive as possible to potential merger & acquisition activity.

Cultural fit is key to any successful M&A activity, but cultural fit is hard to monetise. The most effective way for a business to secure the value it is looking for in a sale is to consciously improve profits. It's therefore vital that firms have a profit improvement project forefront of mind, especially when the EBITDA metric is typically used to value the business. This means that a business can strengthen its negotiating hand and significantly increase return with every £1 added to EBITDA. Firms must provide proof of healthy profits driven by strong commercial management – the ability to scope and structure client engagements so that they are delivered on time and on budget. This suggests strong client retention and satisfaction, the foundation of a business with a strong potential for growth."

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Creating a successful exit strategy isn’t just about the numbers - 08 Jan 2013 - Accountancy Age:

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.