book.tbr - Flipbook - Page 22
DIVEST MERGE ACQUIRE
Advertorial
Always go in with a backup plan
CHRIS MITCHELL explains what to do when approached to sell your business
UR overriding advice is this:
the single most in昀氀uential
factor over saleability and price
is the creation of a market
of strategically motivated, 昀椀nancially
strong buyers. Whatever you do, don’t
compromise this. Don’t ever enter a
negotiation without alternatives. Having
alternatives is essential and could be worth
millions to you.
Being approached by someone wanting
to buy your business may be irresistibly
attractive, whether expected or not. An
unsolicited offer could come from an
industry player, private equity 昀椀rm, a friend
or even a competitor.
The attraction of a one-on-one process
promises to be simpler, faster, less
stressful and more con昀椀dential. However,
you should resist the temptation to deal
exclusively, and carefully consider all the
O
Don’t ever enter a negotiation
without alternatives. Having
alternatives is essential and could be
worth millions to you
ingredients of a successful transaction
before ever committing to go with a oneon-one transaction.
Many clients test their network to see
if there is any interest and often engage
advisors with one or more buyers already
in tow. Sourcing a potential buyer is
important, but a higher priority is to ensure
you attract the most suitable buyer on
favourable terms and have a capable team
to manage the process alongside you.
Every buyer values each business
differently according to their resources,
appetite, investment criteria and how well
the business 昀椀ts with their business or their
future strategies.
Without a range of strategic buyers, you
are unlikely to fully capitalise on your
business’ value drivers to achieve the best
outcome.
A one-on-one process usually favours
the buyer as the buyers have alternatives.
Without competition and choices, the seller
may be disadvantaged. Owners often waste
months and even years on these one-on-one
processes before abandoning them.
The positive pressure of a competitive
process with multiple strategically focused,
committed buyers is the best way to ensure
all buyers stay focussed, put their best foot
forward and drive the price higher.
Effective targeted marketing can
generate many interested parties while
maintaining con昀椀dentiality.
Experienced advisors understand tactics
buyers use to achieve a better outcome for
themselves and can pre-empt issues and
offer solutions to maintain control of the
process.
Negotiating can be time consuming,
emotional and become personal. M&A
advisors provide stability and momentum,
acting as a cushion or circuit breaker
between buyer and seller to keep the
process on track.
Business Sales & Acquisitions Tasmania
Business Sales & Acquisitions Tasmania
Divest Merge Acquire is a market leader delivering exceptional results
Divest Merge Acquire is a market leader delivering exceptional results
in the sale and acquisition of medium and large Australian businesses.
in the sale and acquisition of medium and large Australian businesses.
•
M&A Transaction Advisory firm
M&A Transaction
Advisory 昀椀rm
•
and Acquisitions to medium and large enterprises
Mergers andMergers
Acquisitions
to medium and large enterprises
•
National organisation
National Organisation
•
17 offices and member firms in Australia
18 o昀케ces and
member 昀椀rms in Australia
•
Advises on clients' businesses with EVs $1M - $100M
Advises on client
business values ranging from $2M - $100M+
•
AFSL and Business Sales licenses
AFSL and Business Sales licences
Contact Us
Us for
Contact
for FREE
FREE
Confidential Discussion
Discussion
Con昀椀dential
CHRIS MITCHELL
DEANCHRIS
DEMEYER
MITCHELL CA BBus
CA BBus
CA BBus
0448
0448 887 398
0437 733
811887 398
chris.mitchell@divestma.com
dean.demeyer@divestma.com
chris.mitchell@divestma.com
22 TASMANIAN BUSINESS REPORTER, September 2024
divestmergeacquire.com | 1800 700 111
