Choosing Between Two Paths
-by Phil Biggs, Managing Director
Despite the uncertainty coming out of Washington, or the financial pressures being felt in the European economies, business owners small and large are now finding footing to make new investments to fund their expansion plans.
While it is true there is economic instability around us, credit markets have been steadily improving during 2010. With growth in the number of strategic buyers, and financial conditions the best they have been in two years, there are some good signs to consider an acquisition or sale of a company right now. Add to that a good deal of pent-up demand and you have more than enough ingredients for good timing to move forward with a transaction.
Some business owners looking to sell their companies face the choice of whether to act now...or wait indefinitely in hopes of a better deal. Choosing the right path, whether to wait or move ahead with a transaction, can be a daunting challenge. But that is why your trusted advisors are there with you, to sort out the opportunities from the obstacles as you determine the best course for your most important asset. Waiting can be more difficult than taking action, as you seek to determine value that fairly reflects the energy and passion you have put into your company over a lifetime. But remember that the goal of your transaction advisor is to help you maximize value for your business while insuring that the path you take is as smooth and clearly defined as possible.
Depending on your personal needs and business objectives post-sale, we are seeing that this is a great time to consider a transaction, because at times like these savvy business leaders move beyond bearish downturns to find opportunistic ways to launch their vision as a buyer. Similarly, sellers who follow their instincts can many times find opportunity despite market corrections.
A final thought about the path that may lay ahead for you is one that could propel you into the new decade. Keep in mind that there is a historic re-structuring and re-capitalization of the American business landscape happening now, where boundaries and outputs have dramatically changed. We are coming to the end of the age of the traditional business organization as we have known it for over a century. If you sell, this is an exciting time to participate. What I try to remind sellers is that it is not the beginning of the end, it’s the end of the beginning. NuVescor is well-positioned to guide you down a successful path and assist you as you move in your new direction.