Mergers and Acquisitions

There is good news. During the housing market crash of 2008 Wall Street opened its eyes to the equity owned by private citizens in their houses and in their businesses. Since the beginning of private property rights, assemblage, also known as mergers and acquisitions, has been a technique employed by ambitious business people and entrepreneurs to increase the value of real estate assets and other holdings in their inventory, including small and midsize businesses. The same principle is available to small business owners today. The strategy is to acquire your competitors’ businesses or sell your business to a competitor who seeks to expand their operations by mergers and/or acquisitions. Keep this in mind. You could merge your business with another company and retain an ownership interest in both companies, providing ongoing income in your retirement. Wall Street and venture capitalists often have minimum thresholds at which they become interested in purchasing cash flows. This truth typically rules out most small businesses from garnering the attention of publicly traded companies and venture capitalists. Because publicly traded companies and venture capitalists prefer larger acquisitions, the opportunity for small and midsize businesses to merge with or acquire other small and midsized companies is enormous. Assembling small and medium size companies in the same business sector and in business sectors related to a particular business’ category is a great strategy for rapidly growing your business. When you hire LAM to acquire businesses on your behalf or to sell your business, marketing your business to companies who are in the growth phase of their lifecycle will be one of many tactics applied to the marketing of your business. If you own commercial real estate in connection with your business, LAM is the company you want to manage the sale or lease of your commercial real estate assets when the time is right.

Over the years, LAM’s experience is that some small and midsize businesses struggle to keep detailed financial records. When this is the situation it makes presenting the business to prospective buyers and merger partners, in the business’ best light, much more challenging. If you are reading this and you are not yet ready to sell or reorganize your business but can see that you will be in the position to sell or reorganize in the relatively near future, it is a good idea to consult with LAM now. LAM will assist you in preparing your business for the next step in the lifecycle of your business. LAM offers site preparation, inventory management and bookkeeping services to businesses that will benefit from those services.