Posted by
Horizon Principals
on
July 13, 2010
Timing M&A, Part I: It’s Complicated
One of the most common questions we hear is, “When is the right time to sell my business?”
This is a complicated topic. Equally sound lines of reasoning can run entrepreneurs in circles.
For example, if a business represents most of a successful entrepreneur’s net wealth, a financial advisor would naturally say "sell now" because the entrepreneur is taking serious risk with most or all of his eggs in one basket.
On the other hand, if the business is growing, an entrepreneur might say “hell, no” to selling since it’s unlikely that he would find another asset that will outperform his business.
There is always a good reason to sell and a good reason not to sell.
So, how does Horizon Partners answer the question, “Should I sell my business?” Actually, we don’t.
We rarely advise a company that they should go to market.
Instead, we typically advise a company on two things:
- What they will find if they do go to market.
- How to optimize a transactional process if they choose to go to market
Our job is to help the client make an informed decision.
In the following posts, I’ll explore some ideas around the timing of selling a business.
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Posted by
Horizon Principals
on
July 13, 2010
Tags
Investment Banking, M&AComments
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Horizon Partners is a boutique financial advisory firm serving companies in digital media, software, and related growth sectors. Horizon provides advisory services to help companies raise capital and execute mergers and acquisitions.
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