practice management

Selling Your Business: Consider This Good News

Experts Say Investment Firms Sitting on Trillions of Dollars

DALLAS, Nov. 29, 2016 /PRNewswire/ — According to a recent article in the Dallas Business Journal, quoting industry experts, “There is $1.3 trillion in capital ready to be invested by private equity firms as these booming investors are now attracting big money from foreign countries…”

“The availability of this funding and the interest of foreign investors has benefited our clients,” said Carl Doerksen, Director of Corporate Development with the Generational Group, a leading mergers and acquisitions advisor for privately held, middle-market businesses.

While many large investments by foreign investors make headlines, 39 percent have fewer than 100 employees and 57 percent have fewer than 1,000 employees, according to statistics from the Organization for International Investment.

The White House report, Foreign Direct Investment in the U.S., states that since 2006 the U.S. has been the largest recipient of foreign direct investment in the world. According to the U.S. Commerce Department, “Foreign investors value the country’s skilled labor force, diverse consumer markets, research universities and a predictable stable regulatory system.”

Cast a wide net

“It is important to cast a wide net to obtain the maximum value for a business as well as to achieve other potential goals such as terms of payment, continuing in a management role, protecting current employees or keeping a business in a community,” said Terry Mackin, Managing Director Mergers & Acquisitions with the Generational Group. “M&A experts can help create a process with multiple interested buyers who will be more open to considering these factors as part of the conditions of the sale.

It is important to cast a wide net to obtain the maximum value for a business as well as to achieve other potential goals...

“In addition, there are specific steps owners can take prior to a sale to interest as many potential buyers as possible and to add value to the business as a whole,” said Mackin. “With thousands of investment opportunities to consider, investors will quickly eliminate a business that has not taken specific steps to get ready for a sale or does not meet the criteria they see necessary in their individual market.”

“There are thousands of businesses for sale at any one time,” added Doerksen. “Marketing to investors means creating a clean set of books and a compelling marketing document to identify the real value of the business.”

Business owners can find additional helpful information in a Generational Group white paper, 5 Mistakes to Avoid When Selling Your Company, or attend one of the company’s complimentary exit planning seminars.



About The Generational Group
The Generational Group, headquartered in Dallas with over 200 professionals located throughout North America, helps business owners release the wealth of their business by providing merger, acquisition, and strategic growth advisory services. Their four-step approach features exit planning education, business valuation, value enhancement strategies, and M&A transactional services. For more, visit here and the Generational Group press room.