M&A and Exit Planning Trends 2021
As a result of the pandemic, many business owners are accelerating their exit timeline and changing their definition of wealth. On February 18th, we held a live panel discussion to explore key market dynamics and implications for M&A and exit planning:
- 2020 Tax Changes and 2021 Perspective: Overview of recent legislation, including COVID stimulus plans, and potential future legislation which will impact your business and future value.
- M&A Market: How the pandemic has impacted the current state of the M&A market including valuations, exit strategies, and timing.
- Exit Planning Process: Why it’s more important now than ever.
- Value Building: How your current growth strategy fuels your transition strategy, and can pay dividends in the short term.
Moderator and Host:
Laurie Barkman, CEO & Strategic Growth Advisor, SmallDotBig
Panelists:
Brian Baum, Managing Director, Interchange Capital Partners
Christopher Brodman, President, Metz Lewis
David Eichenlaub, Managing Director, Confluence Advisors
Mary Richter, Shareholder, Schneider Downs
View the webinar recording:
Key themes from the session:
- Many business owners are accelerating their timeline for transition. Start the process early to create options in the future.
- Look at your business through the lens of an acquirer.
- Business value is dependent on different factors including size, predictability of future profits, growth potential, competitive differentiation, and how a company is positioned to thrive without the owner.
- To maximize the value of your company, consult a professional advisor early in the process. Mistakes can be costly!
To learn more about preparing your company for a future ownership transition, reach out to Laurie Barkman, CEO SmallDotBig, or visit smalldotbig.com
In this segment, Laurie Barkman presents results from a 2020 survey conducted by The Value Builder System. A survey of about 10,000 business owners showed three things when comparing results to a pre-COVID period:
1. An increased interest in selling their company to a third party and a decline in transitioning to management or family.
2. Owners are accelerating their exit timeline, looking to exit within 5 years.
3. Owners are changing their definition of wealth– defining as having enough money to do whatever you want, whenever you want (more freedom and control of your life).
09:23 – 19:43 In this segment, Mary Richter, Shareholder at Schneider Downs, talks about 2020 Tax Changes and shares a 2021 Perspective, including an overview of recent legislation, including COVID stimulus plans, and potential future legislation which will impact your business and future value.
19:45 – 26:23 In this segment, Dave Eichenlaub, Managing Director at Confluence Advisors, talks about M&A Market Trends: How the pandemic has impacted the current state of the M&A market including valuations, exit strategies, and timing.
26:24 – 42:55 In this segment, Brian Baum, Managing Director at Interchange Capital Partners, and Chris Brodman, President of Metz Lewis, talk about the Exit Planning process, benefits, and why it’s more important now than ever. They share examples and stories to illustrate why exit planning should be a focus today, and not only in the future.
42:56 – 01:54:23
In this segment, Laurie Barkman, CEO SmallDotBig, leads a discussion with the panel about Value Building: How your current growth strategy fuels your transition strategy, and can pay dividends in the short term. Listen to learn more about: If a company wants to sell in the future, what should you work on now to build value and to dovetail with exit planning?
If you’re thinking about your readiness to exit, and want to take a step forward, you’re invited to get your complimentary Readiness Assessments.
Reach out to Laurie Barkman, lbarkman@smalldotbig.com to get the process started.
