PierCap Partners Sage Panel Discussions – How to Survive Selling Your Company

Ashish Jariwala to discuss M&A survival strategies for business owners.

On October 18, 2018, Sage Executive Group hosted a panel discussion focused on one question: “How to survive selling your company?”

The Panel was moderated by Tom Deverell, Facilitator Chair and Executive Coach at Sage Executive Group. Panelists included:

  • Ashish Jariwala, founding partner of PierCap Partners: An investment banker’s perspective on buying and selling companies.
  • William Holiday, wealth consultant, Andina Family Offices: Preparing in advance for financial opportunities to sell or acquire.
  • Ryan Saathoff, CEO of R.G. Alliance Group: Preparing your business financials to be viewed by the world.
  • Vince Monteparte, Sage Executive Group / Partner, Sway Ventures: A personal view on experiencing several company sales.

The topic was timed well. Thousands of middle market companies are being sold, a record level, each month, as M&A activity continues to accelerate – both in the number of deals and the size of the transactions. There is virtual unanimous sentiment amongst business owners, corporate, and private equity professionals that the trend will likely continue for rest of 2018 and well into 2019 – given both (1) the significant pro-business legislation, including tax reforms, macro environment, and (2) the strong need for growth, diversity, talent, sector convergence, and digital transformation.

Even though, buying and selling a business is not a new phenomenon, the rate of pre-acquisition failures of privately-held businesses continues to stay high and remains the most dominant concern among all business owners considering a sale of their business. And while, most of the private negotiations and deal failures are never reported, the more appropriate question is how do you define a failure – is the answer simply binary, Yes or No, based on if there was a closing at the end or not?

Or are there other factors to be considered to find the true answer such as…Is a deal closure considered success without control and leverage throughout the process? Or is a deal closure considered success when significant money is left behind? Or even, is a deal closure considered success when it involves personal stress or disruptions through the journey?

The answer to all these will remain a mystery for mainly two reasons: (1) there is no study that encapsulates the impact of qualitative factors such as communication, trust, emotions and human psychology, and (2) no two transactions will ever be identical or involve the same set of circumstances or people involved.

It would so seem that the best alternative to increase your odds of success would be to have trained m&a professionals  guide you through out and run a thorough market clearing process – which arms you with control, leverage, enforcement, and confidence. As Jerry Rollins, Chairman and Founder of Sage Executive Group, says, “Unsolicited offers have lower odds of closing. You need a horse race. And you need a professional to do it.”

Here are a few select themes that were discussed:

  • What are some of the factors that kill or negatively impact a deal?
  • What are some myths or misconceptions when it comes to sale of my business?
  • What factors need to be true or when is it a good time to consider selling my business?
  • What are the things to be done before and during the sale to maximize the value of my business?
  • Should a business owner consider selling their business themselves?

Finally, here is some feedback from a few attendees:

“Enjoyed and learned most from the many deal examples shared by the speakers. Their insights and actionable perspectives were very helpful.”

“The panelists were well spoken, skilled and kept the audience engaged and present.”

“Good topic and answers were honest, well-articulated, and provided different perspective.”

About PierCap Partners:

We are a mergers and acquisitions (M&A) investment bank based in San Diego and Irvine, CA. M&A is our singular focus. Whether you are thinking of acquiring a business, or selling your business, we run a well-disciplined process that secures best possible value, minimizes disruption and manages the delicate balance and spirit of collaboration. With over $2 billion in aggregate transaction value and 35+ years of combined experience, our leaders bring operational expertise, an owner’s perspective, and Wall Street solutions to you. Find out more about our focus, services and experience.