We are small business investors and advisors. We have investment banking and corporate M&A backgrounds, but we’ve worked “in the trenches” in for years, in our own small businesses (ranging from transportation to technology) and others’.
We have specialist skills in the systematisation of businesses, and we advise our clients on systematising their businesses in order to run them more effectively, create more time for themselves, and to create value from an M&A perspective.
We also have unique insight into the realm of small business M&A, coming originally as outsiders from the corporate world. The market for buying and selling small businesses is shockingly characterised by myth and misinformation. Optimistic sellers are lured into believing that the sale is best handled by outsourcing the process to brokers, who are completely unregulated, and have a vested interest in perpetuating this myth. They market extensively to business owners, while Internet coverage of the topic is dominated by articles written by this industry and its suppliers. Selling a small business this way is therefore the default choice. The result is usually an ineffective marketing process, typically of an underprepared business, resulting in a poor outcome. In a market where 80 to 90% of small businesses do not sell, it is inappropriate for this inefficiency and misinformation to continue.
Small business M&A should not be confusing. Business owners just need to know the truth about:
- What really makes a business saleable, and how to achieve this
- Who is most likely to actually buy their business, and how to reach them
- Best practices for managing the sale process to achieve the best price and terms
With this knowledge they can achieve a much better outcome, whether they still use an intermediary (but manage the process to get the best results), or simply handle the process themselves.
Business buyers need:
- A realistic plan for making their first acquisition
- How & where to find a good opportunity and how to capitalise on it
- What to do in the first 5 days, 30 days and 100 days after the acquisition
- How to utilise the first business to achieve much greater benefit from subsequent acquisitions
Our blog provides insight into these areas from real-world experience.