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The M&A Front
Mergers, Acquisitions, & Enhancing Your Business
March 2008
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in this issue
-Letter from Managing Partner Mark Jordan
-From The Outside Looking In: A Third Party's View on Business Value
-The Ship Is Set to Sail: Are You On It?
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 ______________________________________________________________
Are you as good as your word? Even in adolescence, we ask this of ourselves. The question pops up repeatedly as we progress throughout our lives and careers. It is really a question of dependability and ethics. When I had an ethics discussion with VERCOR's Managing Directors at a recent bi-annual conference, it came up and expanded to a much larger conversation. Do you provide an inflated value for a business to do the proverbial bate and switch? Do you withhold bad information from a buyer knowing that it could adversely affect a transaction? Of course, our Managing Director's answers were to operate in full disclosure and in the best interest of the client. Dependability and ethics goes beyond how we all conduct our core business, doesn't it? Trust is an essential component of the client-company relationship. Not only must a client trust your product or service IS good; they must trust the guarantees that go along with them. Equally important are operational ethics. If you promise to provide a document to a client on a certain date, provide them. Doing anything else, will tarnish the image of dependability you have with your client. Furthermore, if your client cannot trust you in handling deliverables, how can she or he trust you in intricate business dealings where honesty and ethics are critical? A reputation for being as good as your word is hard to develop. A client, John Buchanan recently stated in a case study, "I wanted to use somebody that I thought was honest and reputable. I knew VERCOR's Managing Principal, Mark Jordan, to be exactly like that. I cannot imagine going through it without someone as competent as him." We can aggressively market our products and services. Even our marketing prowess cannot create a reputation for being honest. I encourage you to evaluate your business practices and those of your team on a regular basis. Are you operating in a culture of ethics and dependability? Would your clients say the same? Also, if you are thinking about selling your business now or in the future, give VERCOR a call. We strive to maintain an environment of integrity, experience and excellence. That is as good as our word. 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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From The Outside Looking In: A Third Party's View on Business Value ______________________________________________________________
Most business owners put the majority of their efforts into focusing on making profits. In addition, running a successful business can often be demanding, require long hours, and cause overwhelming stress and consuming pressure. As a result, an exit strategy is often given low priority and delayed. Business owners inherently think that there is plenty of time in the future to plan for their exits and prepare their businesses for a smooth sale. However, there are a couple of problems with this rationale. Quite often, business owners decide to sell their businesses when they are burnt out and no longer have the energy or zeal required to continue running and growing their operations. Once they decide to sell their businesses, they try to implement a series of "quick fixes" that will make their businesses appear more profitable and therefore more valuable. The problem is that sophisticated and experienced buyers will be able to see right past this façade and conclude that the business is not as efficient or successful as it actually is, and therefore lose interest in the company. Only by attracting sophisticated buyers will a seller receive top dollar for his or her business. Also, when there is a lack of strategy in selling a business, it often leads to a seller making impromptu decisions that can greatly reduce the value of the business. Smart business owners are starting to realize that wealth and success does not generally come from the earnings of a business, but from upon the exit from the business. By keeping in mind some crucial aspects, you can be ahead of the game when it comes time to sell your business.
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The Ship Is Set to Sail: Are You On It? ______________________________________________________________
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Quick Links... ______________________________________________________________
Report, "Prepare to Exit Your Business." |
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Contact Information ______________________________________________________________
email:
mark@vercoradvisor.com
phone:
770 399-9512
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