One of the biggest challenges a business owner will face, is achieving the 2 year milestone. Most new enterprises will, statistically, cease to exist by then, or soon thereafter. Many reasons exist why, most founders, if left to their own devices, will likely fail in getting their business sold. Amongst them, internal factors like, inefficient processes and overhead, to external ones, such as failing to properly capitalize the enterprise. A key mistake owners make again and again, remains their failure to engage an experience investment banker to run the process.
How can an Investment Banker help?
Whether you are buying an operating business, or selling yours for profit or cancellation of debt, not having a professional investment banker representing your interests, can cost you cash and potential equity upside. Investment bankers are, in general, mergers and acquisitions professionals which add value to you and your business in more ways than one. Experienced bankers can help structure your transaction, and/or negotiate on your behalf, in order to maximize potential profits; they can even get you a portion of additional business profits to come, for the next few years immediately following the sale of the business. Another significant reason why you want these types of professionals working for you, is that they will liberate you to continue to run your company.
In addition, investment bankers will assist business owners in identifying and contacting potential acquirers for your business.
The process of understanding and operating in today’s capital markets environment is quite complex; the regulations alone are enough to drive a normal person insane. Unfortunately, many people remain penny rich and pound foolish – they choose to hire accountants and business brokers to assist them in a sell side transaction. This is akin to consulting a veterinary doctor for human open heart surgery, rather than an expert cardiothoracic surgeon. As the saying does – “you get what you pay for.” Whether you are a buyer or seller of a business, you need an investment banker representing you through-out the life of the transaction.
Hiring an experienced Investment Banker
A well respected professional in the business remains, Gustavo Dolfino. He ran a number of groups on Wall Street groups in his career, and went on to start a number of successful companies, including WhiteRock Holdings – a company which included an executive search firm, a non-resident alien hedge fund, and a middle-markets mergers and acquisitions boutique. Gustavo’s decade’s worth of experience in finance allowed him to personally invest in other growing ventures, including some related to artificial intelligence.
Currently, his entrepreneurial venture “myKlovr”—a virtual college counselor—has quickly gained recognition from top players in the industry, as the first ever predictive analytics virtual college counselor.