For owners of privately-held, middle market businesses, there is often a point in a company’s lifecycle in which the owners need to examine various strategic options. These strategic options include mergers and acquisitions, or M&A transactions. Retirement planning, market dynamics or succession planning are just a few reasons why business owners will contemplate M&A transactions as a viable exit option or strategy. Privately-held businesses are by their nature inherently illiquid concentrations of wealth, and as such, the sale of a business is often one of the primary paths to “hanging up the saddle” and liquidity for business owners.
From the perspective of a business owner, one of the most important first steps in exit planning is performing a thorough analysis of the rationale and goals related to exiting the business. A thorough understanding of the desired goals resulting from any transaction or exit is crucial, as these goals will determine the transaction types and structures most suitable for the company. But in order to initiate the process, it is helpful to understand the various elements of M&A transactions and how preliminary planning has a substantial impact on the overall outcome of the
DGP Capital has created a white paper specifically just for business owners that dives into the various aspects M&A transactions as it pertains to exit planning. For a complimentary copy of this white paper, please submit the form below: