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The M&A Front
Mergers, Acquisitions, & Enhancing Your Business
February 2008
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in this issue
-Letter from Managing Partner Mark Jordan
-Benefits and Pitfalls of an Asset Purchase
-Where Are You Going?
VERCOR is a middle market investment bank with a proven record for success, confidentiality, and integrity. Our mission is to provide global resources and results in the facilitation of business sales, mergers, and acquisitions. We focus on deals ranging from 10 million to 100 million in value. |
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Letter from Managing Partner Mark Jordan ______________________________________________________________
Do you really take pride in your products or services?
These intrinsic feelings are contagious. When your
team senses the pride you have in your business,
they cannot help but to adopt it in their own work.
Productivity is higher. People are more creative.
Everyone is happier. This creates a buzz of sorts. People - maybe even potential business buyers- want to know what is so great about your business. While we do not consider pride and happiness in valuations, a happy, motivated team is an important asset that sticks out in a potential buyer's mind. This does not only apply to selling a business. Clients want to do business with companies where they feel they will have a positive experience. With customer service on the decline, companies that take pride in themselves and their service usually score in new client engagement and retention. Furthermore, the media and award organizations keep their ears to the streets. They know the companies that are doing well and those that are the best places to work. In this month's issue, we have two great articles, "Benefits and Pitfalls of an Asset Purchase" and, "Where Are You Going?" The latter one discusses the value of business. There are many key factors to consider when assessing and improving the value of your business. The road to improving the perception of your company begins with the simple question, "Do you really take pride in your products or services?" Sincerely, Mark Jordan mark@vercoradvisor.com P.S. If you are thinking about selling your business, give me a call on my direct line at 770-399-9512. You will not find a middle market investment bank that can devote the time, expertise and resources to executing a successful transaction like VERCOR.
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Benefits and Pitfalls of an Asset Purchase ______________________________________________________________
Mergers and acquisitions can be accomplished in a
number of different ways. The ultimate goal of the
transaction is to marry the business and economic
synergies of two or more companies into a better
more competitive company. An acquiring company
will look to either purchase existing assets of a
company or the company's common stock.
Depending on which method is used to structure the
transaction, the effect of a stock purchase versus an
asset acquisition are monumental and will have
varying effects on the buyer and seller. This article will
focus on the benefits and pitfalls of structuring a
transaction as an asset purchase.
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Where Are You Going? ______________________________________________________________
Price and value do not necessarily go hand in hand, but with vision and foresight, the savvy business owner can maximize the sale price of a business by first enhancing its value. Value enhancement requires careful planning and continual assessment of the operation, structure and nuance of a business. Preparation for a business sale is a process rather than a procedure. In other words, it requires time for value enhancers to prove their worth, therefore, it's never too early to start sowing the seeds of value enhancement. Business owners can begin packaging their business for acquisition now, whether they plan to sell in one, five, 10 or even 20 years. And, even if you never expect to sell your business, the following advice is simply good business sense that will enhance your revenue and profitability, thereby allowing for a smooth transition to the next generation. |
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Quick Links... ______________________________________________________________
"How Do Your Behavioral Biases Affect Your Financial Decisions?" |
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Contact Information ______________________________________________________________
email:
mark@vercoradvisor.com
phone:
770 399-9512
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