Creating an Exit Strategy for Your Business
This interview consists of a Q&A session with Derek Groff, a Senior Manager with Frank, Rimerman + Co. LLP, where he specializes in providing business valuation and consulting services for financial, strategic, tax and litigation purposes. A well-known business appraiser, he has taken time out of his busy schedule to cover a few questions that often plague the minds of business owners considering an exit strategy for their companies. We will cover a few topics to include differences between small and medium sized companies, privately and publicly owned companies, capitalization rate and a few others.
Key Points from Our Conversation
- “Since perception is relative and can vary substantially, companies that consider selling should try to anticipate as many potential risks, concerns and deal-breakers as possible; before the sales process even begins.”
- “A strategic buyer can be uniquely positioned to leverage its existing relationship with the target company and can synergistically integrate the target company into its existing platform.”
- “The majority of mergers and acquisitions transactions that fail are due to poor integration planning and clashes of corporate culture.”
- “Whether buying, selling, or appraising, there is always a valuation range that is reasonable and agreeable, no matter what side of the table you are on.”