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What can you do for me that my own network and contact can’t?
Mertz's buyer clients typically acquire companies that were not for sale prior to the search. Mertz knows how to directly and credibly contact potential prospects and stimulate interest in exploring the option of selling.
Mertz has found the best leads often come from contacting prospects directly. How you do this affects the results and Mertz knows how to make approaches that produce results.
With a comprehensive search, you can exhaustively cover an industry and uncover the best options. Mertz has the research capabilities and know-how to perform a disciplined, dedicated acquisition search.
Finally, Mertz spent over 20 years developing an international network of business owners and advisors solely for the purpose of generating options for clients. This extensive network can complement yours.
What are some of the pitfalls that Mertz can help avoid?
Inexperience can cause unnecessary misunderstandings that may derail a transaction. There is no question that in many cases it is in the best interest of both the buyer and seller to proceed; yet, they do not because of too many misunderstandings. Representation by an experienced advisor can help avoid these misunderstandings.
Some examples include:
- Buyers routinely close the door if an inexperienced seller has an inflated asking price. In some cases, we recommend continuing to become acquainted and exploring how the businesses complement one another. It is possible for both the seller and buyer to adjust value as more facts are shared.
- Sometimes one party does not respond as quickly as the other party would like. Mertz maintains a flow of communication and ensures that both parties focus on timely progress.
- Either party can vent frustrations about the other party to Mertz, and options can be discussed constructively. This eases the tension before approaching the other party.
Why should we disclose our identity, plans and strategies to a target company before we know the target wants to sell?
Opening doors is essential to making acquisitions. By being upfront, you improve your credibility and thus your opportunity for additional discussion. Owners of target companies almost always believe they have more to lose by disclosing an interest in selling than the buyer has in disclosing their interest in buying.
Mertz has spent years fine-tuning approach techniques. Target companies often explain that they receive numerous overtures to explore selling. While they typically have not responded, they chose to respond to Mertz because the approach was credible and sincere.
How can we ensure that we are acquiring the best available match for our needs at the lowest price possible?
If you perform a comprehensive search, you will thoroughly learn the market and can determine your best options. Being successful requires that you not only do extensive research, but also approach the targets in a way that stimulates discussion. How you conduct yourself will affect the outcome of discussions with other parties.
Who needs to be involved from our company and why?
It is essential that decision makers and operating people become involved in the buying process. These key people provide important feedback in evaluating the opportunity because they will be responsible for post-purchase consequences. Also, your key employees can help “sell” your company, thus winning over prospective sellers. This is especially true if the seller is privately held because the owner may view their company as a life-long investment rather than a business.
How quickly can we get this job done?
How long it takes depends on your marketing strategy and other factors affecting your business. If you aggressively develop and work your options, you could be signing the dotted line within six to eight months from the time that you begin the process. In selected cases it is possible to complete a sale in as little as four months. Sometimes, it may take over a year.
For an overview of marketing strategies, read " On the block--How to find a buyer and get a premium price for your business."
Why should we hire Mertz if we are already talking with a buyer?
Some of the many reasons include:
- A preemptive approach (approaching and negotiating exclusively with one buyer) may not be optimal, depending on the buyer, the business being sold and your objectives. Mertz offers insight to your options, including value and other strategic buyers.
- The best buyer is not always the most logical. Usually when a seller provides a list of likely buyers at the beginning of an assignment, the ultimate buyer is not even on the list.
- While it may be in the best interest of both the buyer and seller to proceed, inexperience could foster unnecessary misunderstandings that derail the transaction. Having an experienced advisor representing you can help to avoid these misunderstandings.
- Mertz anticipates problems and properly positions you for the best possible outcome.
- Unlike your attorney, Mertz can talk with any party to the transaction. This can be invaluable for buffering complaints and floating trial balloons.
When is the right time to sell?
If your objective is to optimize value, good times to sell include when:
- a motivated strategic buyer expresses interest
- business is on an upward trend and things look good for the near-term future
Other less obvious times to sell include when:
- you are no longer motivated to lead or own the business
- business is on a downward trend and you do not know how to reverse it
- business does not fit with your long term goals and objectives
What kind of experience does Mertz have in my industry?
First, Mertz specializes in buying and selling businesses with $5 million to $100 million in sales. This middle-market focus is a specialty in itself, as the dynamics within this niche are different than those of smaller or larger businesses.
Second, Mertz has completed transactions in a diverse range of industries. Through past assignments, we developed a knowledge base in many industries and completed multiple transactions within certain industries. To learn more about our experience by industry, review our transaction history.
Third, while Mertz has experience in many industries, we often work in industries that are new to us. We have extensive research capabilities and can bring ourselves up-to-speed quickly so that we knowledgably and effectively represent our client.
How can I maintain confidentiality when selling my company?
The broader your scope of marketing, the more difficult it is to maintain confidentiality, no matter how careful you are. Working with just one buyer on a preemptive basis is the best way to maintain confidentiality. Yet, a preemptive approach may not be optimal in your situation.
Marketing approaches range from preemptive to mass, with a wide range of selective marketing options in between. Before choosing your marketing approach, consider all factors including confidentiality.
If you have an interest in learning more about different marketing approaches, read " On the block--How to find a buyer and get a premium price for your business."
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