INCREASED CONSOLIDATION ON PATH FOR RECORD HIGHS IN 2017
Whether it was the $26.2 billion deal between Microsoft and LinkedIn or the $12.2 billion merger of Marriott and Starwoods or the $48.5 billion transaction between Direct TV & AT&T --- the consolidation business is in full swing. Verizon & Yahoo ($6.4 billion), Tesla & Solar City ($2.6 billion), Abbott Labs & St. Jude Medical ($30.6 billion), the list goes on and on. Google has made over 190 acquisitions since its inception including daily utilized items inside my home like Nest, DropCam & YouTube. Apple acquired 13 companies in 2013 and in 2014 purchased Beats Electronics for $4 Billion -- the company founded by the famous entertainer and business mogul Dr. Dre. Facebook has made over 55 purchases since 2010 and likely will continue to dominate their marketing medium. Whether you own a local lawn care company, a unique distribution business, a regional transportation company, right now today your industry is being consolidated.
The average time from inception to completion of an acquisition is typically in the 18-24 month range. The importance of quality financial statements is key, as well as working with a seasoned business executive who can properly market your business. The more buyers the better, obviously leveraging your particular skill set and quality yet business sellers must be realistic on valuations and timing. So before you choose your business broker, be sure to sit down with him or her and ask "how long do you envision before we sign a Letter of Intent (LOI) and at what multiple of EBITDA(R) do you see as attainable in my industry. If you cannot agree on these initial questions, I suggest you either search for a new professional representative or re-adjust your expectation. Chelax Industries understands that your business is your baby, and most entrepreneurs only sell them once. Chelax will help you separate the emotion as much as possible focusing on maximizing your lifetime dreams.