100% Business Sales

Studies demonstrate that over the next 10 years, approximately 80% of all business owners will exit their businesses. Further, about two-thirds of them will exit through an outright sale to a third party business buyer. That calculates to about half of all businesses in operation today! Unfortunately, however, these business owners have yet to formulate an exit strategy. That’s where we come in. Approximately 60% of the deals we transact fall into this broad category of 100% business sales, usually for exit and retirement reasons.

There are many types of buyers for a business today, including:

• Strategic Buyers
• Search Funds
• Independent Sponsors
• Financial Buyers (add-on acquisitions)
• Management Team (backed by Private Equity)

When planning for a sale of your business, we recommend beginning with the end in mind. Each of these buyer profiles have different motivations and criteria for valuing and buying a business. At Strategic M&A Advisors, we are intimately familiar with your buyer’s strategy, and we formulate a strategic plan for you to maximize business value while creating a win-win opportunity between you and your business buyer.

At SMAA, we’re specialists. Let us formulate a strategic plan for you.

Majority Recapitalizations

The remaining 40% of our M&A engagements fall into the category of majority recapitalizations. You have a proven business model and devoted your entire life into your business for the past many years. You’ve successfully grown the business by dedicating every ounce of energy you have into the plan – while leveraging your entire net worth and your family’s in the process. You can take the business to the next level on your own, but the risk level rises with each step along the way.

Sound familiar? This is the phase at which many businesses start to level-off and become “lifestyle businesses”. But we believe this is the perfect time to create a relationship with a growth partner and take the business decisively to the next level.

Selling a majority interest to a growth partner can have many potential advantages, including:

• The elimination of personal liability associated with corporate debt
• Diversification of wealth
• Strong board-level support of the CEO provided by the growth partner
• Resources brought by the growth partner to enable dynamic growth of the company
• Continued commitment to management, employees, and community
• Continued rapid growth of business value

When the creation of a growth partnership goes right, the business owner’s “second exit” is often more lucrative than the first. Call us today for a no-cost, no-obligation assessment of your majority recapitalization options.