In a special supplement of the Triangle Business Journal’s (TBJ) April 5 print edition, “Navigating the Triangle’s Booming M&A Market,” Smith Anderson partner Mike Saber, along with a panel of industry professionals, shared insights on today’s M&A market. Other panelists included Lanny D. Byrum, CPA, Founding Partner, Burns & Bynum, CPA and Consulting; Bryan Dobson, CEO, Quality Equipment, LLC; Randy H. Nelson, CEO, Gold Dolphins, LLC; and Kenneth H. Marks, CM&AA, CFq, Managing Partner, High Rock Partners.
For TBJ’s March 22 event, “Today’s M&A Market: Private Company Exit Strategies and Opportunities,” Mike addressed topics such as preparing a business for sale and how to mitigate organizational hurdles.
Among other topics, the panel discussed earn-outs, trends in the market and the importance of preparing your company for an M&A event. Regarding earn-outs, Mike noted the inherent differences between the goals of buyer and seller when it comes to the performance of the target company after a transaction closes. “This can produce a bit of tension, which can lead to disputes on a post-closing basis,” Mike said. “However, it can create a lot of upside for the seller, and if it goes right, it can be a home run.”
In preparing a company for an M&A transaction, Mike believes preparation adds value. It’s important to ensure your company is ready so a buyer can come take a look, he said. He notes that “getting your ducks in a row ahead of time” will not only allow you to close the deal faster, but produce some value along the way.
Smith Anderson partner Mike Saber works with companies on corporate transactional activity, including mergers and acquisitions, venture capital, capital-raising financings, technology transactions and other mission critical matters. He regularly counsels entrepreneurial and closely-held businesses from start-up through growth stages in industries ranging from manufacturing to retail to technology. Mike is a board of director and member of the executive committee of the Council for Entrepreneurial Development (CED). He also co-leads the firm’s Life Sciences and AgTech industry practice groups.
Triangle Business Journal subscribers can view the full article here.
View a highlight video of the panel discussion below.
TBJ M&A Event from Jericho 7 Films on Vimeo.