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September 16, 2019

Would You Like to Buy a Vowel?

The process of selling a business is a lot like spinning the “Wheel of Fortune,” with the pointer stopping in sections between spoke names 6x EBITDA, 11x EBITDA, Diligence Issues, Recession, and Leadership Gaps; the latter of these serving as the sell-side equivalent of “lose a turn.”

The second quarter showed an increase in deal activity and a continued rise of purchase multiples, and we are hearing from many owners that they are considering spinning the exit “Wheel of Fortune.”

In “Wheel of Fortune,” buying a few vowels can be the key to winning or losing – same with selling a business. We recommend considering the following:

  • Accountability: Ensure you have knowledge of market-clearing prices and hold you and your team accountable, committed, and focused on an M&A process.
  • Execution: Put an experienced team of legal and financial advisors in place, and have the appropriate resources to prepare for, manage through, and close on the transaction.
  • Initiative: Identify and address all accounting and business issues for higher EBITDA and multiples.
  • Ownership: Confirm that your partners, shareholders, and management are on the same page. 
  • Understanding: Educate your team on M&A processes and the ins and outs of deal procedures.

CBIZ CMF is a partner to you in the sale of your business, division, or product line. We bring our experience, wisdom, and understanding as to how a company prepares for, manages through, and closes on a transaction. We work side-by-side, on-site if necessary, with your team. 

As we transition through the second half of 2019, engage CBIZ CMF to support your management team and its bandwidth constraints to enhance the probability of a close by year-end.

For more information on CBIZ CMF’s Prep for Sale Program, please click here.

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