Strategic Partnerships and Acquisitions
99% of all companies get sold at some point in their lifecycle, and most high growth companies sell within 5-10 years of start-up. Who will be the best partner for you? How do you find them, and optimize your result in terms of value, culture and strategic fit? Very few CEO’s I’ve talked to are completely happy about the sale of their business, and the ultimate post-merger results. The reason is they did not follow the nine key strategies for a great partnership.
The Nine Key Strategies for a Successful Merger Are:
- Focus on Your Ultimate Customer is the Company You Will Be Selling Yourself To
- Design Your Business for a Strong Values and Strategic Fit With Your Ideal Likely Buyers
- Seed Your Buyers With a Partnership or relationship Long Before it’s Time to Sell when possible
- Design Key C Level Relationships to be Strongly Incented to Make the Merger Work
- Have Credible Projections and Current Historical Financials
- Create Reasonable Competition (at least 3) Active Potential Buyers to Work With
- Sell Into Expectations (New Product, New Market, etc.) Whenever Possible
- Have a Well Defined Integration Plan and Team Before Finalizing a Sale
- Negotiate Full Sale at Closing vs. Future Performance Based Valuation When Possible
Email us at Mitchell@GrowthCEOAdvisors.com to schedule a complementary Strategy Consultation on your business merger needs.