Corporate buyers committed to growth through acquisition are stepping up their game to win the favor of owners of successful middle market companies. Although business owners strive to be meaningful players on the competitive scorecard, they often don’t actively prepare for the time when bigger players approach them. Most acquisition deals for entrepreneurs and family businesses are ignited by an incoming call from a senior executive at a larger company you know and respect. You may not be actively planning to sell, but you might consider the option when the buy-side is most eager to make an offer you may not want to refuse.
If you own a good business, you are not impressed by the idea that your company is an attractive target for a strategic buyer or a private equity fund with an agenda that you fit nicely into. What you may not know is exactly how real the alternatives are for grabbing the brass ring and having a shot at sweetening the profit in a deal. That is where MidMarket can add value for you to maximize those opportunities.
A common mistake by owners is assuming that the buy-side interest will be there whenever they decide to go to market. The fact is that a variety of factors outside of your control have an impact on the attractiveness of your company. You should be cautious about assuming that the market will be interested whenever it suits you. We suggest striking while the iron is hot.
What the majority of entrepreneurs and family businesses so often fail to appreciate is that people who own businesses for a living (corporate buyers and private equity firms) are fundamentally different from people who happen to own and work at the business they own. Professional ownership is motivated by the opportunities to grow and monetize the business, so different standards for measuring success apply. Unless you have actually participated in an ownership group involving a corporate owner or private equity owner, you most likely don’t really know their game. We can provide that input for your benefit so that you manage the interaction with prospective buyers or investors.
What is not surprising it that your competitors are plotting to succeed at your expense. They may not be as nimble as you or as capable, but they are very real and you must be ready to anticipate and respond to their actions. Strategic deals often trigger further activity and can also limit options. All the more reason to be out in front of your competitors on these matters.
MidMarket can help you to take advantage of this surge in corporate acquisitions and ownership transactions. Just call us if you are interested in how we can be helpful. Contact us for a no-strings attached assessment of your situation.