How are office technology dealers responding to an active M&A market? Here’s some insight from a recent survey of dealer principals and acquirers:
- 19% of dealer principals have a written business succession plan
- 67% of dealer principals have no idea what their company is worth
- 91% of dealer principals have no idea if a leveraged buyout of their firm can raise enough capital to fund an ownership transition
- 93% of dealer principals are unclear as to the impact of financing on the valuation of their company
A few quick takeaways:
- If you don’t have a plan, it’s time.
- If you don’t know what your company is worth, how can you know if a strategic or financial buyer is giving you a good deal or even if it’s the right time to sell?
- Knowing how to unlock equity that might facilitate a transition of ownership and ultimately a liquidity event for you as an owner is very important but not well understood.
- Financing and customer finance programs can significantly impact your company’s valuation, yet principals are unclear as to how.
We can help you understand the role that customer financing can play as you plan for the transition of your company.