Recently Datasite, a provider of secure data rooms for M&A professionals to store confidential deal data, surveyed over 2,000 of their clients around the world about deal making in 2020 and what it will look like in 2025. One of the key areas they learned about was how time-consuming and critical due diligence has become (and will become).
As many of you know, due diligence is one of the most complex and exhausting steps in selling any company. Dealmakers who have been in the exit planning industry for years often say that a deal is not a deal until it dies three times during due diligence.
The survey conducted by Datasite was very informative, but what it revealed more than anything else is that if you want an optimal exit from your company, at a price and deal structure that is also ideal, you need professional guidance. Here is some of the research they found:
Multiple factors can slow the due diligence process, but the two that do so the most are: incomplete or inaccurate deal documents and information (31%); and inadequate technology supporting the process (22%).
Realistically, even a skilled dealmaker cannot smooth out all the bumps on the deal making road. However, odds go up significantly if you have a professional at your side when you enter due diligence.
For two critical reasons:
In reality, these two go hand-in-hand. It is vital that all your documentation is accurate and your projections are realistic, but it’s just as important to be mentally and emotionally prepared to have every piece of your company dissected and analyzed to a degree you will never have thought possible.
Keep in mind that professional buyers loath risk. They do their research in detail to eliminate as much of it as possible. Their process to do so can be laborious and tedious to business owners, but the reality is if you are prepared you will come out of the process in far better financial (and mental) shape than if you are not prepared.
And how do you prepare?
Hire a professional exit planning firm to guide you. Don’t just take my word for it – listen to what a few of our clients have to say about how critical it is to have professional guidance:
Based on the research from Datasite (and our decades of collective experience in getting over 900 deals closed the last few years), we agree with the following statement:
Hire a professional to help you long before you contemplate an exit.
Most likely you will need quite a bit of guidance to make your business (and yourself) “buyer ready”. That is not unique; most businesses do need this strategic counseling to reach a point of a successful exit. Our award-winning consulting team is ready to work with you on your exit planning process. To learn more, please reach out to us to attend one of our complimentary growth and exit planning conferences:
Carl Doerksen is the Director of Corporate Development at Generational Equity.
© 2021 Generational Equity, LLC All Rights Reserved
The information we learn from customers helps us personalize and continually improve your experience. Here are the types of information we gather.
We receive and store any information you enter on our Web site or give us in any other way. We do not sell or rent your personal information to others without your consent. We use the information we collect only for the purposes sending promotional information, enhancing the operation of our site, serving advertisements, for statistical purposes and to administer our systems. We DO NOT use third parties to provide customer service, to serve site content, to serve the advertisements you see on our site, to conduct surveys, to help administer promotional emails, or to administer drawings or contests, but reserve the right to do so in the future without advance notice.
Generational Capital Markets, Inc.’s affiliates are all part of one corporate family, they work with one another and may work together to provide services to you. The sharing of your information among affiliates enables Generational Capital Markets to serve you more efficiently and makes it more convenient for you to do business with Generational Group. Generational Capital Markets is permitted by law to share information with its affiliates. All of our affiliates follow similar privacy policies.
For reasons such as improving personalization of our service, we might receive information about you from other sources and add it to our account information.
Generational Group may license the use of its intellectual property including but not limited to its name, likeness, and logo for the use of affiliated offices. Such affiliated offices may not be owned, controlled, managed, supervised or staffed by employees, officers, or agents of Generational Group. Affiliated offices may be independently owned and operated. For more information about a particular office, please contact Generational Group at its office in Dallas, Texas.
This page may contain other proprietary notices and copyright information, the terms of which must be observed and followed.
Information on this web site may contain technical inaccuracies or typographical errors. Information may be changed or updated without notice. Generational Group may also make improvements and/or changes in the products and/or the programs described in this information at any time without notice.
Generational Group does not want to receive confidential or proprietary information from you through our web site. Please note that any information or material sent to Generational Group will be deemed NOT to be confidential. By sending Generational Group any information or material, you grant Generational Group an unrestricted, irrevocable license to use, reproduce, display, perform, modify, transmit and distribute those materials or information, and you also agree that Generational Group is free to use any ideas, concepts, know-how or techniques that you send us for any purpose.
Our computer system protects personal information using advanced firewall technology.
Information Generational Group publishes on the World Wide Web may contain references or cross references to other products, programs and services that are not announced or available in your country. Such references do not imply that Generational Group intends to announce such products, programs or services in your country. Consult a Generational Group representative for information regarding the products, programs and services which may be available to you.
Generational Group makes no representations whatsoever about any other web site which you may access through this one. When you access a non-Generational Group web site, please understand that it is independent from Generational Group, and that Generational Group has no control over the content on that web site. In addition, a link to a non-Generational Group web site does not mean that Generational Group endorses or accepts any responsibility for the content, or the use, of such web site. It is up to you to take precautions to ensure that whatever you select for your use is free of such items as viruses, worms, Trojan horses and other items of a destructive nature.
IN NO EVENT WILL Generational Group BE LIABLE TO ANY PARTY OR ANY DIRECT, INDIRECT, SPECIAL OR OTHER CONSEQUENTIAL DAMAGES FOR ANY USE OF THIS WEBSITE, OR ON ANY OTHER HYPERLINKED WEBSITE, INCLUDING, WITHOUT LIMITATION, ANY LOST PROFITS, BUSINESS INTERRUPTION, LOSS OF PROGRAMS OR OTHER DATA ON YOUR INFORMATION HANDLING SYSTEM OR OTHERWISE, EVEN IF WE ARE EXPRESSLY ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
Generational Capital Markets, Inc. ("GCM"), member FINRA/SIPC, is wholly owned by Generational Capital, LLC ("GC"). Both GCM and GC are affiliated with Generational Equity, LLC; and all part of the Generational Group of companies. This website is solely for general informational purposes and is not guaranteed by us to be accurate and complete statements of fact and should not be relied on as such. Opinions in this website constitute the current judgment of the author as of the date and its last update. The content of this website does not necessarily reflect the opinions of GCM, and is subject to change without notice, and GCM is not under any obligation to update or keep current any information contained herein. This website does not constitute any personal recommendations and does not take into account the specific investment objectives, financial situation or particular needs of the reader. The information contained in this website should not be construed as an offer, or a solicitation of an offer, to buy or sell any securities or other financial investments. The information presented should not and cannot be viewed as an indicator of future performance. To the extent permitted by law, GCM does not accept any liability arising from the use or retransmission of the information in this website.
Furthermore, all information contained within this website is the property of Generational Group.
Honored to win Investment Banking Firm of the Year 3 years running.
Over 50 awards and counting.
Sign up to receive regular email updates, industry-leading insights and details on complimentary M&A executive conferences in your area from our award-winning team
Success, you have been added to our list.