At Allegiance Capital, we pride ourselves on having a high degree of success with our clients. When they decide to sign on with us, we’re confident we can find the right buyer who is willing to pay the right price for our client’s company.
And while we wish we could say that we get to represent every prospect who visits our Dallas offices, that’s not the case. Sometimes these prospects decide to go with another firm, usually a much smaller firm with far fewer resources that offers to represent them for a lower fee.
Many times we see that client again. But the “second time around” is far different from the first. Because of the contract the client signed, he or she often must wait before working with another investment bank or risk paying two success fees, one to the first firm and one to us.
That’s why hiring a team with experienced deal makers and deep resources often makes a lot more sense. Because when you’re selling your company, it’s important to do it right the first time.
About 18 months ago, John Slater in his Capital Matters blog, explained why business owners should carefully screen the firm that will represent them when it comes time to sell their business.
Slater summarized what he learned in an interview of Gabe Galvez, the CEO of CapTarget, a provider of M&A research and deal origination services. Galvez said the average M&A firm serving the middle market had decreased in size to just two people.
Based on the Galvez interview, Slater concluded that the successful middle-market M&A firm of the future would be “A strong team of experienced colleagues collaborating to bring to bear their varied expertise and experience to address the particular client’s needs.” And he went on to note that “We live and work in an increasingly complex world, and one or two professionals, no matter how talented, cannot have the breadth of knowledge required to address the myriad of issues that arise in a business sale.”
I’d have to say that Slater’s conclusion sounds an awful lot like the investment bank we’ve built at Allegiance Capital over the last 20 years. We have a team of 30 deal makers in Dallas, Chicago and New York. We also offer under one roof at our Dallas headquarters every skill and service that the owners of small to mid-sized businesses would need to get the best price for their company.
At Allegiance Capital, we want you to know what you’re getting into when you sell all or part of your business. We view educating prospective clients as one of the most important things we do.
We like to begin our process by offering a free book called Street-Smart Moves for Selling Your Business by Joe Aberger. This small book addresses 29 topics that are critical to selling a business like yours. Be sure to Sign Up Now.
As you may have heard, a lot of people think we could see our next recession within two years. It could easily take up to half of that time to sell your company – one more reason why you’ll want to do it right the first time.
About the Author
David J. Mahmood
Founder & Chairman
Phone: (214) 217-7732