Misconception #2: Don’t Miss Out on Growth in the next 3-5 years

Most business owners think an M&A transaction is only applicable if they want to exit now. Our process can produce an investment partner that helps you grow over the next 3-5 years and then you fully exit. If you are thinking about exiting in 3-5 years, read on!

What is the Best Transaction for Me?

There are two types of transactions we complete for our clients. First, our client wants to retire and wants us to sell 100% of his or her business. This client will transition the business over to the buyer over a six to twelve month period and walk away. Second transaction: our client wants a partner to help grow their company, wants to offload responsibilities that they no longer want to do, and wants to benefit financially from the growth the partner is going to help them accomplish.

Which type of transaction receives the higher valuation overall and leads to the most aligned partner/home for our client’s business? The second transaction.

This second transaction will have the business owner, our client, fully exiting from the business in 3-5 years. In fact, the majority of the transactions we have completed over the last three years were this second type of transaction. The reason is many business owners don’t know exactly what they want to do after fully exiting their company but they do want to offload the burden of ownership. This transaction helps lengthen the exit process.

Why Would I Stick Around?

Many clients and prospective clients think they need to put in place all these changes before they can go through an M&A transaction. By sticking around after the sale, you are creating your succession plan with the new partner you have so minimal preparations need to be made prior to going through the transaction.

What if you are growing a lot and have good prospects for the future? Why would you sell part of your company now? You will benefit from the growth by us finding buyers that come to the table with a structure that rewards you without you taking on as much of the total equity risk of your business.

How will you know this will be the right partner/home for you and your business? ASA Ventures only represents sellers in all transactions. We have told multiple clients to walk away from deals before their consummation if we do not think this will be a good partner for you. Our interests are completely aligned with yours.