PMCC Ventures has bee involved in buy or sell transactions for more than 40 years. Working on both sides of deals helps us to know more about “what the other side is thinking”.
Today- there are a lot of good reasons to consider selling a company- whether you are a Private Equity Portfolio investor, or a long-term entrepreneur that has built a company the “old fashioned way: Smarts, hard work and a bit of luck mixed in”. And today, there are a lot of people interested in having you quickly get rolling in the process.
But we think it is better to first follow the earlier wisdom of Kenny Rogers- and check what condition your condition is in Listen here before you follow his later advice and start playing your hand.
We have recently been involved in two transactions- one where we were able to work with the seller to end up with a purchase price 1.7x the original offers, and another, where the sellers enjoyed 6x their original investment in about 5 years. Neither were flashy or high tech- just companies whose services are in demand today.
We avoided the dreaded answer of: “Good point, we will have to get back to you on that”. Instead, we were mostly able to respond- “that’s an interesting way to look at it- let us show you how we look at that”.
Our teams simply prepared hard and played well. We worked with our clients to be well prepared for the “end” before we even started. We followed the advice of: run the business today like you were going to sell it tomorrow [be really well prepared]. We anticipated questions, we analyzed data to develop and deliver our answers. We were of the belief that the sum of the parts were much greater than the average– as some of the underlying businesses generated much more value [in the eyes of buyers] than other parts- and we strove to prove the case.
Today sales opportunities abound- no matter the size of the company, but perennially it is wise to note that all deals are not created equal. This is the time to prepare for the most important sales call you will ever make.
PMCC Ventures is happy to share our 40+ years of learning with you. We are happy to help if you decide you want it. Check here for some further thoughts.
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