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The Fifth Component Of Value – Dynamic (Part 6 of 7)

5 May 2008 No Comment

The Fifth Component Of Value – Dynamic

Here’s where it really gets exciting – and you definitely can’t do this by yourself. Once you have the ‘perfect storm’ of company value and interest in the market by acquirers, the right process will ignite an auction for your company among all the buyers. You’ve seen an exciting auction, and may have even been caught up in one. The auctioneer expertly presents the offering and then deftly works the crowd until, when the gavel finally falls; the price received is something that seemed unattainable at the beginning. That’s every seller’s dream – be in such demand that you are no longer negotiating with the buyer – they are competing for the chance to buy your company. You can’t start here; you can only get here once you’ve successfully built the first four steps.

The right process is the key to success. The manager of that process, your investment banker, needs a good product (your company) and plenty of time. You can’t show up unprepared, ask to be sold immediately, and expect any sort of premium. Markets and buyers have cycles and your banker will know when the optimum time to take you to market is, how to position your company, and who to approach as likely buyers.

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