Hello, welcome to my new blog that will discuss issues that are important to business owners in transition. Specifically, DM Buck Advisory, LLC works with business owners in the areas of Exit Planning, Business Valuations, and Investor Relations.
Thanks to the COVID-19 epidemic, most people’s worlds have been shaken. This includes the estimated 12 million baby boomers in the U.S. who own a business. Some of these owners have begun to plan for their eventual exit, but I would bet that most have not done serious strategizing. I would also bet that most of that latter group would be quite concerned if they understand the numerous challenges presented by selling a business successfully. (Most aren’t sold well.)
The typical business owner has most of his/her wealth tied up in the business, and most will only have one shot to get a sale done right. In many cases, the potential buyers will be experienced acquirers who are very skilled at finding (and negotiating over) perceived shortcomings. And, given the disproportionate number of baby boomers who are currently eyeing retirement, selling business owners will have to be very good at every step of the process because it is increasingly a buyer’s market.
How do we help?
Exit Planning- Ideally, in the years headed up to a business exit, the business owner should seek a competent consultant to help prepare for this complicated process. Questions like “Should I sell to insiders or outsiders?”, “What is the firm’s transferable value?”, “What are my firm’s shortcomings?”, etc. are but a few of the many questions that an owner must address before beginning the sales process. (NAVIX Consultants, the nation’s leading exit planning consultancy, is our partner.)
Valuations- We bring decades of financial analysis experience from Wall Street to help business owners understand the likely value of their business. This includes anything from a full appraisal to a simple estimate. (We operate using the principles of the American Society of Appraisers (ASA).)
Investor Relations- Interacting with existing or potential new investors requires a special skill set. Drawing from years of hands-on experience, we understand what investors like to see, and how to crystallize a given company’s key investment characteristics.