How To Prepare Your Company For Sale When It’s Not For Sale

In my 20-plus years in the M&A business I’ve learned three truths of the trade: A business is always for sale. A business is not always prepared to be sold. And culture, strategy and price matter most in an acquisition. What’s your culture? It’s everything from whether you have high variable pay vs. high base pay to whether you compensate certain roles substantially more to whether the business is run with the expectation of generating higher or lower profits. It’s difficult to integrate culturally divergent businesses.

The CFO role is incredibly more complicated than it was 20 years ago. You have to deal with extreme stock market volatility, trade wars, inverted yield curves and vendor consolidation, not to mention technologies, like blockchain and AI, that have game-changing potential. Fast-growing companies are increasingly being approached by private equity (PE) firms, bankers and strategic buyers, including competitors.

Unless you’re prepared to respond proactively, evaluating serious preemptive offers is going to be disruptive — sometimes enough to destroy business momentum and even harm long-term shareholder value.

Read the full article here.

previous post Back to Articles next post

24 Jan 2022

Tailwind Capital Sells AST Corp. to Recognize Partners

Financial Information ($USD) Not Disclosed  Transaction Details Tailwind Capital today announced it has completed its sale of AST Corporation to Recognize Partners, a technology services focused investment platform. Financial information was not disclosed. AST, a leading cloud and digital transformation solutions provider, simultaneously announced the deal, categorizing it as a strategic investment by Recognize to enable AST to accelerate investment in innovation,...

03 Jan 2022

Office Depot Sells CompuCom Systems

 Financial Information ($USD) Transaction Value: ~ $305 million Enterprise Value: $1.72 billion EV/LTM Revenue: 0.19x EV/LTM EBITDA: 3.85x  Transaction Details The ODP Corporation (NASDAQ: ODP) announced that it has sold its CompuCom Systems subsidiary to an affiliate of Variant Equity in a transaction valued up to $305 million. The transaction consideration of up to $305 million consists...

29 Dec 2021

Happy Holidays – The 2021 martinwolf Annual Letter

Dear Clients, Partners, and Friends of martinwolf M&A Advisors,   I hope you all are having an enjoyable holiday season with family and friends.   It’s been my tradition in this annual end-of-year letter to spend time reflecting on the past year, and to look forward to what the next year holds for us. We have plenty...