Ready to transition or exit your business? Hire a CLA Investment Banker

It started with as a dream and through challenging work and determination, you built a thriving business. You have achieved success figuring things out, building a team and making an impact in the community.

As an owner you have reach the decision to sell, with the objective of optimizing the value of the asset representing 90+% of your net worth. You could do it yourself – especially when you calculate the fee for hiring an investment banker. The urge to do it yourself by figuring things out is a strong one, but wait, I will tell you that the best ROI decision you can make would be to hire an investment banker.

Study after study shows that an investment banker yields a high financial payoff. For instance, a University of Alabama and Portland State University study involving 4,468 transactions over a 20-year period estimated that sellers who hired an investment banker received valuation premiums around 25 percent, depending on their methodology.

Similarly, Northern Trust’s Business Advisory Services group analyzed 4,316 transactions and found that sellers represented by an investment banker obtained an average EBITDA multiple 1.5x higher, with narrower dispersion in outcomes (i.e., lower risk).

Additionally, ever wonder why when private equity goes to sell a business, they hire an investment banker. That finding is amazing considering that many private equity investors are former investment bankers and typically have a large contact list of potentially interested buyers.

Like any professional you hire, advisors and professional services firms are not created equal– team, quality and negotiating skills differ dramatically.

At CLA we believe that our purpose and specialization in working with privately held businesses throughout their life cycle, especially their transition and exit give us a unique ability to help you navigate selling your business.

Most business owners have never sold a company before, so having CLA sharing their wealth of knowledge and managing the entire process will help get the deal successfully across the finish line, while minimizing the stress and anxiety associated with what is typically the largest financial event of a sellers’ life.

Aside from the total purchase price, here are a few of the most important advantages that business owners can realize by engaging an investment banker:

• Greater cash paid up-front with the best terms
• Increased likelihood of a successful closing
• Staying focused on your core business
• Reduced stress levels.

In addition, hiring an investment banker adds credibility, giving the prospective buyer the impression that there are competing buyers for the acquisition. It also sends a strong message that the seller is committed to the sale.

The bottom line: you can live with total confidence that you received the absolute best options and price possible by working with CLA.