Now is not the time to be recommending selling to your client. Finance is tight and buyers are being brought deals that they could not have found with great effort a short time ago. Values are suffering. Selling is hard.
Could it be a good time to reevaluate growth through acquisition (even to firms more intent on internal growth or even exit planning?).
Here’s why it might be:
Strong players can make deals that will not be possible in strong markets. Transactions must be made with the finance and terms that are available. Money is tight and owner finance is far more common today than it was two years ago.
Growing companies prior to exit is a pragmatic approach to growing value, especially if the growth is low risk.
Many smaller and undercapitalized firms will accept buyouts on asset based agreements to procure some upside for their business rather than struggle through an unpredictable next year/s and risk losing everything.
Build a smart team,
Create a smart plan from start to finish:
*determine precisely what fits–weighted averages criteria model
*plan for transition and monitoring of all aspects of transaction integration
Build a big list,
Contact everyone with a basic friendly invitation to talk
Manage and track information (use modern tools for data tracking)
Monitor progress and make adjustments