Wednesday, August 22, 2012

Preparing to maximize value - More companies point to 2013 -14 as the time to for exit.

[Recent updates to business owner studies indicate that approximately 1.2 -1.5 Million U.S. business owners with businesses between $2M and $100M in revenue need to sell in the next 3 years to provide liquidity for retirement]
Companies have stabilized. Many companies that implemented cost containment or performance improvement measures during the downturn are now reporting higher EBITDA - some on lower revenue. Some companies have seen demand for their products and services rebound; others have found new markets. Some markets, like healthcare, have continued to be robust.

Many believe that there will be a rush to the market in 2013-14 due to the following dynamics:
  • Business results have rebounded  
  • Business owners that wanted to sell during 2008-12 now feel a sense of fatigue
  • Business owners will be five years older by 2013 than they were in 2008
  • After the 2012 presidential election, there may well be a period of disillusionment as business owners recognize that the president alone (regardless of party) cannot fix the economy
  • Business owners may fear that taxes will continue to rise and the dollar will continue to weaken
  • M&A professionals and experienced business owners know that valuation multiples are higher earlier in a sales boom than later in the cycle

Mead Consulting cut its teeth helping companies grow and add value. Growth is still our primary focus. However, as our client business owners "matured" we began to help them prepare to maximize value when transitioning or exiting the business. MCG senior consultants have helped dozens and dozens of companies successfully prepare and navigate through the sales process - both in operating roles as business owners and C-level executives inside their own companies as well as advising MCG client companies. Today, Mead Consulting helps many companies "get ready."

We have seen a dramatic increase in the numbers of companies that are preparing to sell in 2013-14.  These are some of the companies Mead Consulting is currently working with to improve readiness and maximize value:
  • Healthcare services
  • Healthcare IT
  • Building materials
  • Metals service centers
  • Manufacturing
  • Technology-enabled  services
  • Software
  • IT services /outsourcing
  • Business services
 Should you be evaluating your options? Contact us and we can help you assess your current situation and readinessFor more information, see our website 

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