If you're a business owner in an acquisition stage or, alternatively, contemplating a company sale, there is certainly a lot to think about.
The direction your industry is trending in -- if that is discernible through close analysis of relevant variables and factors -- is something you're certainly looking at. Is your business in an industry that is materially influenced by potential sea changes in the political landscape? Will exacting due diligence across all company dimensions reveal notable liabilities that need to be addressed or, conversely, particularly strong points that add appreciable value to your company?
Buy-or-sell decisions in the American business world are fraught with complexities, and a business entity needs all the help it can get to make sound and dispassionate calls regarding enterprise dissolution or purchase.
One recent business article notes how important it is "to look at long-term economic trends in order to assess the best time to sell a business or expand through acquisition."
That article, which is authored with a specific focus on health care-related entities, concludes that one particular economic model that delves into business cycles indicates this: the market is now in a deal-expansion phase that signals a "prime selling time."
The transaction-based model has produced evidence that a "deal recession" of recent years marked by banks' overall disinclination to liberally engage in loan making and new investment opportunities has now largely passed.
And the bottom line regarding that, says a business expert commenting on culled data regarding lending, investment attitudes, the flow of capital and available financing, is that a seller's market presently exists for health care enterprises.
She additionally notes, though, that such a phase is temporary, with a likely business transition within a couple years making things more favorable for buyers of such entities.
Business-projection models are always interesting, of course, with seemingly well-researched ones uniformly commanding close attention from business principals.
But they are hardly the end-all determinant for making important business calls. Methodical and smart analysis will not rely upon any single data source but will, rather, carefully consider many integrated factors.
Experienced business lawyers routinely help diverse clientele craft and implement productive buy-and-sell strategies. The proven commercial law attorneys at the Southern California law firm of Larson & Gaston have collectively been doing so for decades. We welcome contacts and the opportunity to advocate diligently and with proven acumen on behalf of all our valued clients.