M&A Deals - The Benefits of a Global Auction

With regard to M&A Deals – the benefits of a global auction should always be considered when selling your business. It is important to offer a sell side transaction as broadly as possible to achieve the best possible results.
A broad based approach will result in a global auction for the company, thus ensuring the highest possible value as bids are received from across the globe. A multitude of bids to examine will reveal the true value of the selling company. It will also provide the seller with unique insights as some of the bids will have different structures. This will give the seller a chance to “mix and match” structures to obtain not only the highest value, but also the best terms.

Versailles Group has conducted a number of these global auctions over the last 28 years. It should be stressed that all of these auctions are 100 percent confidential. It should also be noted that the results have been phenomenal, in terms of both value and terms. Versailles Group sold a company in Massachusetts to a company in South Africa. Another company headquartered in Houston was sold to a company in New Zealand. The firm has multiple success stories, all based on the international, highly confidential auction. In the case of the South African company, they paid two times the next closest bid, which demonstrates that this process works.

Entrepreneurs and corporate sellers should always be cognizant of the eventual sale of their business and should be preparing for a sale long before they think it’s time. Private equity investors and venture capital investors achieve success when selling businesses because they start preparing for a sale even before they invest.

Most business owners don’t think about selling their business, particularly when they’re starting out; however, it is something that should be considered annually. This should be done with a professional M&A advisor that can advise you about your company’s possible value, the market, possible timing, etc.

When it is time to sell, a broad based approach to the sale should be your first consideration. Frequently, the best buyer is a company on the other side of the world. That being said, as with all M&A deals, confidentiality is paramount. Only responsible M&A advisors know how to conduct themselves and the sale of your company in a secure and confidential manner.

M&A Deals - The Benefits of a Global Auction - Conclusion

An M&A advisor with decades of experience and a global reach will know how to create and facilitate a worldwide, confidential auction. That is the best way to achieve the maximum value and terms when selling a company. To summarize, for M&A deals – the benefits of a global auction should not be underestimated.