THE 5 TOP REASONS WHY BUSINESS OWNERS HIRE A MERGER & ACQUISITION ADVISOR
1. 34% — MANAGING THE SALES PROCESS I always refer to the selling of a business in the same way a pilot flies a plane. There is a checklist to follow. You do not deviate from the checklist because if you do, there is a very good chance the plane will not fly, or if it does, it may crash. The same principle applies to the selling of a business. We have a checklist and a process. Follow the checklist and the process and your chances of having a successful closing are almost guaranteed.
Anybody who has ever owned a business at one time or another comes upon the idea of stepping away from their business and moving to someplace sunny and warm and not having to deal with the hassles of the business. When these thoughts come into one’s mind, it sounds like a good idea until they get to thinking about how much work it is going to be to sell their business when they don’t have enough time now just trying to keep the business running. The next thought that comes into their mind is: “I could probably sell it myself because I have sold lots of things in the past, and I’d save myself some money and know who the buyer would be.” I know this for a fact because of all the clients I have worked with, and I have had the same thoughts, too. But having been in the business of selling businesses for over 30-plus years, I knew I was too close to the subject of why a business owner should hire an intermediary and especially one who specializes in a certain niche like I do with convenience stores, so I did some research on the subject. I found a survey that had been taken with over 500-plus sellers asking them the question, “Does hiring a Merger & Acquisition Advisor add value?” Immediately when someone hears this question, they generally think the reason anyone would hire an M&A Advisor is to find a buyer for the business. However, this was not the case. Listed here are the top five reasons business owners employed and used the services of an M&A Advisor.
intermediary, this was not the case. Finding a buyer is not as hard as people think, but finding the RIGHT buyer who knows what they want, understands the process, and the work it is going to take to complete the purchase, and has the financial capability to close the transaction and not try to claw back on the agreed upon price at the end of the transaction is what you are looking for. 4. 10% — LIMITING THE DISTRACTION TO THE BUSINESS OWNER AND THE MANAGEMENT TEAM A business owner needs to do what they do best, which is run their business, and let the M&A Advisor do what they do best, which is manage the process of selling the business. You can’t do both. You can’t run your business efficiently and try to sell your business at the same time. It is a huge distraction and, many times, will crater the deal. 5. 9% — ESTABLISHING CREDIBILITY It indicated they were serious about selling their business and not just fishing in the market. With the added credibility of using an M&A Advisor, the prospective buyer knows all parties are serious. An M&A Advisor is not going to be wasting their time or resources, and they will be selective as to what buyers they decide to engage with because they are involved for one reason, and that is to get the business sold, not to have a conversation.
2. 24% — NEGOTIATING THE DEAL
Effective negotiators know you can’t represent yourself. When you attempt to represent yourself, you are too close to the transaction, and you tend to take things too personally. Nobody likes to hear they have an ugly baby. You are in an adversarial position, which compromises your ability to look at the negotiation in a fair manner, and many times, you are negotiating with a party that is more skilled at negotiating than you are because they do it on a professional level while you don’t, making the negotiations an unfair fight. When I am selling something I own, I hire an intermediary because I know when I am working for my client, I am a very good negotiator, but when I try to do it myself, I am almost inept. You can’t negotiate for yourself and get the best results. There is a reason why celebrities, sports stars, and politicians hire professional negotiators to work for them.
–Terry Monroe
3. 23% — FINDING BUYERS
Even though most people think finding a buyer is the No. 1 reason to hire an
A HEARTFELT MESSAGE TO MY SPECIAL CLIENTS AND FRIENDS
I want to share a little secret with you. I don’t spend my time cold-calling or pestering people for business. Instead, I focus 110% of my efforts on giving the best possible service I can in helping business owners get the information they need to decide the best options available to them and their families when thinking of stepping away from their convenience store business. In return, they share my name with their friends and business associates.
I would like to take a moment to acknowledge and thank a few of the special people in my life who have helped me build my business to where it is today with their enduring support and referrals. I couldn’t do it without you!
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