#sellingabusiness

Every successful business follows a lifecycle—plan, grow, and eventually exit. While many entrepreneurs focus heavily on growth, fewer take time to strategically plan their exit. In reality, thinking ahead about transition options such as mergers, acquisitions, or succession is essential for long-term success. This is where m&a consultancy plays a vital role, helping business owners make informed decisions at every stage of their journey.

A well-planned transition ensures that when the time comes for change—whether expansion or selling a business—the outcome is smooth, profitable, and sustainable.

Plan – Building the Right Foundation

The planning stage is where a business is shaped for long-term success. Strong foundations make future transitions easier and significantly improve valuation.

Key planning priorities include:

Defining clear business goals and direction Establishing scalable systems and processes Building a strong brand identity Ensuring financial discipline and transparency

At this stage, engaging m&a consultancy services early can help owners understand future exit possibilities and structure the business in a way that attracts investors or buyers later.

Planning ahead also ensures that when owners consider selling a business, they are not starting from scratch but building on a well-prepared foundation.

Grow – Scaling for Value and Strength

Growth is the most visible stage of any business journey. However, smart growth is not just about increasing revenue—it’s about building value.

With the guidance of m&a consultancy, businesses can focus on strategies that enhance long-term valuation rather than short-term gains.

Key growth strategies include:

Expanding customer base and market reach Increasing recurring revenue streams Improving operational efficiency Strengthening leadership and management teams Investing in technology and innovation

A well-structured growth phase ensures that when the time comes for selling a business, the company is attractive, stable, and scalable.

Growth also reduces risk and builds investor confidence, which directly impacts valuation during future transactions.

Exit – Turning Value into Opportunity

The exit phase is where years of effort are converted into financial return or strategic transition. This can include mergers, acquisitions, or outright sale.

With professional m&a consultancy, business owners gain expert guidance on timing, valuation, and deal structuring.

Important elements of a successful exit include:

Accurate business valuation Identification of suitable buyers Negotiation of deal terms Legal and financial due diligence Transition and handover planning

For many entrepreneurs, selling a business is one of the most significant financial decisions they will ever make. Proper planning ensures that this step is rewarding and efficient.

The Role of M&A Consultancy in Business Transitions

Professional m&a consultancy acts as a bridge between business goals and market opportunities. Consultants bring expertise in valuation, deal structuring, negotiation, and market positioning.

Their role includes:

Identifying growth and exit opportunities Preparing businesses for investor readiness Matching sellers with qualified buyers Managing confidential negotiations Ensuring compliance and risk reduction

With expert support, business owners can make confident decisions at every stage of the lifecycle.

Why Strategic Transitions Matter

Businesses that plan transitions early consistently achieve better outcomes. Without preparation, owners risk undervaluation, poor timing, or failed deals.

Strategic transition planning helps:

Maximize business valuation Reduce operational and financial risks Improve buyer confidence Ensure smoother ownership transfer

Whether the goal is expansion or selling a business, structured planning creates long-term stability and success.

Common Mistakes Business Owners Should Avoid

Many business owners delay exit planning or ignore the importance of structured growth. This often leads to reduced valuation or rushed decisions.

Common mistakes include:

Lack of financial transparency Over-dependence on the owner Poor documentation and systems Late-stage exit planning Ignoring professional m&a consultancy support

Avoiding these mistakes can significantly improve business outcomes.

Conclusion

The journey from planning to growth and finally exit is not accidental—it is strategic. Businesses that follow a structured lifecycle approach consistently outperform those that do not.

With the support of m&a consultancy, owners can confidently build stronger businesses, scale effectively, and prepare for successful exits. Whether the goal is expansion, restructuring, or selling a business, strategic planning ensures maximum value and long-term success.

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Selling a business can be complex, but a professional like Alan Mehrez, an experienced business broker, helps streamline the process. This article walks you through each broken sale stage—from initial valuation and listing, to marketing, buyer screening, negotiation, and closing. Learn what to expect, how to prepare, and how someone like Alan Mehrez supports you every step of the way.

When negotiating selling/buying a business, both seller and buyer could end up losers

By Dave Driscoll

During my career in business, both as an owner and advisor, I have learned to keep the big picture and the road to that vision clearly top of mind in my decisions. “What is my desired outcome? What is my long-term objective? How do I get there?”

Being a professional M&A broker advisor, I interact with buyers and sellers daily. My mission is to achieve the seller’s goals when exiting their business, as well as to fulfill the buyer’s desire to own a profitable business. Balancing each parties’ interests can be challenging, especially when one party has the attitude they must “win” the contest over the other. I have seen many a party not achieve their objective -the sale or purchase of a good business - due to the must win attitude. That singular focus on winning the current “round” instead of looking at the big picture leads to the deal evaporating. Future opportunities are lost that could have benefited both parties in a more balanced negotiation.

What drove me to start my first business was a passion for what I was doing. I was selling a consumable product that my employer manufactured according to each customers’ specifications, and that customers needed to reorder repeatedly because it was a critical part of doing business. The relationship between the supplier and the customer was ongoing, offering the opportunity to build long-lasting relationships. Likewise, my vision for my future was to own a business manufacturing a consumable product that was the basis for long-term customer relationships. That was my “big picture” and the specific product mattered less to me than the framework of reoccurring revenue and connections.

Without money to purchase a business, I decided to just start my own. Initially, I brokered the consumable product through wholesale manufacturers; I was a professional salesman - a manufacturer’s representative who took title to the product I sold. When I started, I had no customers, just a vision of what I wanted my life to look like… my destination.

Working hard, seizing opportunities, responding to the pulse of the market, and expanding into manufacturing capabilities as demand for product grew, ultimately led me to living my ideal vision for my career and lifestyle. Along the way, I achieved huge successes along with major disappointments – that’s an inescapable part of being a business owner. There are no guarantees and assuming risk is the price of ownership. Ultimately, reaching my vision came from learning to succeed more often than I failed. I never kept score in some imaginary competition with others. I just kept visualizing where I wanted to be and taking logical steps in that direction.  

Failing to develop a long-range vision and to keep all eyes on that destination has caused many buyers and sellers to miss their “big picture” (and big opportunities) by only focusing on winning here and now. Not compromising to a common middle ground when negotiating a business sale or purchase results from letting the ego overshadow the vision of what you are striving to achieve.

Too often, sellers and buyers are short-sighted about negotiations instead of considering how their lives will change post-sale. Both parties in a business transition need to weigh the significance of those last few dollars or percentages as it relates to their overall goals.

From the buyer’s perspective… how long will it take me to recoup the amount I give up to get the deal done? Three, six, 12 months, or longer? Under my ownership and fresh energy, is the company likely to perform better and shorten that timeframe? Does acquiring this company support my future vision of myself and my lifestyle? Is the ongoing potential outcome (and income) worth more than what I concede?

From the seller’s position… how strong is the pull from my life beyond business?™ What value do I place on time with family (grandchildren!), travel, less daily responsibility, fewer obligations, and time for volunteering and hobbies? Or maybe just the option for leisurely reading a book? Is there a different career I want to explore? Is the amount I sacrifice worth more or less than those pursuits?

Advancing toward your ambitions should be the focus for both buyer and seller, not competing for the last nickel and a tick mark in your personal win column! In pursuit of the win, you could quickly become the biggest loser.

Dave Driscoll is president of Metro Business Advisors, a mergers & acquisitions, valuation and exit/succession planning firm helping owners of companies with revenue up to $20 million sell their most valuable asset. Reach Dave at [email protected] or (314) 303-5600.  www.MetroBusinessAdvisors.com

“Time kills deals” is a well-proven axiom in M&A brokerage

By Dave Driscoll

Time is not necessarily a friend when it comes to mergers and acquisitions transactions. When a prospect decides to actively investigate buying a business, all parties and advisors should commit to a deliberate pace to move the process forward. The M&A advisor, prospective buyer, and seller all need to focus on reaching critical decision points that either progress toward a purchase or determine the deal won’t happen.

Buying a business is a time-consuming process even under the best circumstances. When a prospect identifies an interesting opportunity, a non-disclosure (confidentiality) agreement must be signed, and the financial ability to consummate a transaction must be assessed. After clearing those hurdles, a Confidential Business Profile of the business is shared with the prospect.  

Assuming the buyer prospect likes what they see, the next step is a conversation with the business broker to answer additional questions and/or to provide more information to assist with the decision to proceed.

If the buyer confirms continued interest, and the broker believes the prospect and seller could realistically reach agreement, the business broker should coordinate an offsite meeting to introduce the seller and prospective buyer. This is an opportunity to engage in a general conversation about the business and gauge chemistry between the buyer and seller.

As you see, quite a bit of time can pass before an introduction with the owner. Reaching that step in a timely manner will not occur if either the broker or seller does not do their part to manage the process, or the buyer prospect approaches the process casually. Even coordinating busy schedules and a location to introduce the seller and buyer can take several weeks.

After the meeting, both the buyer and seller must determine whether they want to proceed toward a sale. Yes, the seller may decide (for a variety of reasons) that they do not want to sell the business to a specific candidate. In most cases, the seller wants to feel confident the business will continue to succeed, provide for their employees, and satisfy their customers. Therefore, a seller will be judging the buyer on their perceived ability to successfully lead the company.

If the parties mutually agree to continue, drafting the Letter of Intent (LOI) is next. The LOI is the formal written record of the business terms and conditions of the deal as discussed between the buyer and seller during the investigation process. The LOI is non-binding but is negotiated to capture “the essence of the deal.” The broker facilitates the LOI negotiations; several drafts typically pass back and forth before all parties reach agreement either to proceed to due diligence or to abandon the deal because of an impasse.

The lengthy process described to this point assumes both the buyer and seller are engaged, motivated, and willing…and can take four to eight weeks. Now imagine if either party is not proactive, or the M&A intermediary is not engaged and diplomatically conveying the urgency of next steps to both sides.

When the LOI is accepted and signed by the buyer and seller, due diligence begins. The length of due diligence is defined in the LOI and generally is 30 to 60 days, plus an allowance for extensions based on certain circumstances. The buyer creates a list of confidential information requested to investigate more intimate details of the business during the due diligence period. Essential ways to expedite the process include the buyer providing the list of requests as soon as due diligence begins, the seller providing complete, well-organized information proactively and/or promptly when requested, arranging tours, etc, and the broker delivering information and managing the requests as a quarterback for the deal. 

If the buyer remains committed to the deal, transaction attorneys begin drafting the Asset Purchase Agreement (APA) during the due diligence period. The APA is the legal contract that describes the terms of the sale, including representations and warranties. All terms and conditions to close must be negotiated between buyer and seller (with advice of their attorneys), so there is a real possibility that the due diligence period and APA negotiation combined may take an additional 60 days. 

One major condition to closing a deal is determining how the purchase amount will be paid. If the buyer needs bank financing, a “commitment to lend” letter is required during the due diligence period. Once the buyer has secured financing, processing that loan can take 30-60 days, depending on the type of funding. SBA processing frequently takes 60 days.

Once the due diligence period is completed, the APA is fully negotiated, financing is secured, and all the necessary documentation is completed to lend, the closing is scheduled. Typically, closing can occur within a week after all ducks are in a row.

The transaction process from start to closing can take three to four months, or even longer. That’s a long time for the seller, buyer, and broker intermediaries to stay focused and keep the process moving efficiently. Any diversion or distraction along the way can slow down the process and fatigue all the parties.

As a buyer or a seller, you must be aware “time kills deals” and be vigilant about completing each step of the process efficiently. Be realistic and don’t waste time if the transaction is not the right match, but if this deal does meet your goals, focus on the prize!

Dave Driscoll is president of Metro Business Advisors, a mergers & acquisitions, valuation and exit/succession planning firm helping owners of companies with revenue up to $20 million sell their most valuable asset. Reach Dave at [email protected] or (314) 303-5600.  www.MetroBusinessAdvisors.com

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