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SPEC Talk Radio – Preparing Your Business to Sell or Attract Private Equity

January 25th, 2009 · No Comments

SPEC Talk Radio with host Karen Rands talked with experts about preparing your business to sell for Millions or attract Millions from a private equity fund in this economic market. Special Guests were Ed Fisher of SouthPointe Ventures www.southpointeventures.com (a private equity fund), Roy Strauss of Strauss Consulting www.scg4u.com (a M&A advisory and prep firm),  and Woodsson Woods of Woods Business Group, http://www.woodsbusinessgroup.com/web/index.php (a business broker).

Listen now!

Key insights shared by all three were:

3 things that acquirers look for are:

1.  Competitive advantage.  Business must be sustainable and scalable.  Cannot just be a lifestyle business dependent on the founder for everything.
2.  Consistent revenues that can be verified and the basis for the value set for acquistion
3.  Management must have depth and experience to be the ones to take it to a new level (if acquired by a PE fund) or can integrate with the new owners if being wholly acquired.

Two things will kill a deal:

1.  Management having very unrealistic expectation on selling price and worth of business.  (Guests spoke about thinks one can do to improve selling price.)
2.  Any misinformation or blatent misrepresentation that is discovered during due diligence.  (This also goes for raising capital at an early stage.)

Also, if you are seeking to develop relationships with PE Funds to some day sell your business, plan to attend the Association for Corporate Growth’s annual Capital Connections conference in Atlantat on Feb 10th.  Details can be found at www.acg.org/atlanta

Check out these investment websites: www.kugarandholdings.com, www.launchfn.com, www.nbai.net, www.sePrivateEquity.org , www.myvirtualangelworld.com, and www.dothedeal.org

Listen, Learn, Enjoy and Share with a Business Associate!

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Tags: Current Financing Trends · Entrepreneurs Seeking Capital Corner · Podcasts

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