Article:

Getting that pay day for all your efforts | 4 steps to M&A success

23 February 2018

Steven Sorbello , National Leader, Corporate Finance |

It is easy to take for granted the years of effort and sacrifice that go into building a business. A lot of business owners get caught up in the day-to-day running of their business and often don’t realise the value of what they have created. Creating a successful business from scratch is hard – which is why so many people are prepared to pay handsomely to acquire an existing business. 

I am often asked to help people achieve the best possible price for their business. 

Our BDO Brisbane deal team have led a wide range of well-known transactions such as RFG’s acquisition of Di Bella Coffee, the sale of Koramba Cotton to Australian Food and Fibre and assisting Buderim Ginger to attract strategic Asian investors.

Not all businesses are the same, so the process for maximising the price is different from one business to the next. However, experience tells me that there are some common factors that assist in any process:

1. Get your house in order

Ensure your accounting, taxation, legal and operational affairs are ready to be scrutinised. This step often takes some work and it is important to have an adviser that is capable of helping you do this.

2. Spend time finding the right buyer

Organic growth in many sectors is difficult and buyers are looking to acquisitions to achieve their strategic objectives. It is important to reach those motivated buyers so make sure your adviser has good relationships, including with private equity, overseas buyers and institutions. 

3. Being comfortable with the advisers you select

The best outcomes are often achieved when the business owner, the management team and all the advisers work seamlessly together. Nobody knows a business better than its owners and their employees, which is why it is important for advisers to listen to their clients first. 

4. Plan for the unexpected

A sales process rarely goes exactly as planned. There are twists and turns that can often be unnerving. When this happens, have pride in what you have built, focus on the process and the outcome inevitably will take care of itself. 

Remember also that a sales process rarely goes exactly as planned. There are twists and turns that can often be unnerving. When this happens, have pride in what you have built, focus on the process and the outcome inevitably will take care of itself.  This is a lot easier to do when you trust your adviser.

BDO is well-placed to provide a full transaction services to our clients. Contact us today to find out more.