The 2020 Mid-Year Economic Update_long

Posts By Jonathan Skelly

Despite the credit crunch and tough times, a company with the capital may want to take advantage of conditions to make strategic acquisitions. Here's a look at best practices in acquisitions to ensure success in this strategy.
While the current economic environment and financial market meltdown have most business owners focused on conserving cash, controlling/reducing headcount and holding on for dear life, most of the wealthiest individuals in the world (including Mr. Buffet) will likely tell you that it is in these uncertain times that fortunes are made.
Our belief is that this is true for distribution and industrial businesses that have the capital and courage to pursue strategic acquisitions in 2009. Valuations have meaningfully decreased and most of the ...
As the M&A marketplace for wholesale distribution companies continues to be active, an increasing number of distribution company owners have begun to contemplate selling their business.

While the sale of a company is equal parts art and science, one thing is clear -owners and operators who properly prepare for a sale and take into consideration the main criteria buyers use in assessing an acquisition, consistently achieve more favorable outcomes.

Here is a synopsis of criteria buyers of businesses consider in an acquisition and what I focused on while executing acquisitions for HD Supply and Hughes Supply.
 
Preparing for a Sale
Once owners determine their desire to sell the company, it is necessary to follow a core set of steps to best position the ...