Morgan Shaw Advisory is revealing the potential that 2023 holds for M&A activity and is sharing advice on how to capitalize on it.
While there are warning signs of a global recession, the prospects for healthy businesses with steady growth and a good balance sheet are likely to remain strong. In fact, the challenges brought on by a sliding market can be opportunities for businesses operating in key sectors that are likely to become the focus of consumer spending in the future. These include electrification, digitization, energy, defense, education, health, and security.
By getting a head start on viewing one’s business through the lens of future acquisition potential, business owners can prime themselves for receiving offers. The metrics that interested buyers might be interested in are both quantitative and qualitative. So, while the ability to generate sales and turn a profit is key, companies that have solid structures and processes in place, and demonstrate the ability to scale, divest and diversify are the ones that are going to be primarily sought after.
“Of course, your financial strength, revenue profile, IP, client profile, and business maturity are going to be under scrutiny,” says Graham Morgan, Managing Director at Morgan Shaw Advisory, “but so are your business’s attractiveness in terms of scope of growth, your core competitive advantages, business processes, marketing, the quality of the workforce, and the associated risk. Your business is more than just numbers in a spreadsheet. Potential acquirers today want to know that they are buying into a business that can sustain itself and offers opportunities to excel in the market.”
M&A consulting firms can help businesses get ready for the next step in their journey which can include everything from raising capital, acquiring other businesses, issuing an IPO, or selling the business.
Australian M&A consulting firm Morgan Shaw Advisory has developed the EBITDA+ SIX STEPS TO SUCCESS™ approach to help its clients become more appealing to potential buyers and maximise its value on exit. The approach helps business owners achieve their goals while minimizing the associated stress and uncertainty.
It begins with evaluating a business current value, identifying actionable improvements that can increase it and building and executing a plan to achieve it. Upon getting the business up to par, MSA will then run the highly complex transaction process, marketing their client’s business to as many prospective buyers as necessary while protecting trade secrets. The firm vets the authenticity of incoming offers, negotiates the transaction price as well as associated terms and facilitates a smooth transition beyond the sale.
Graham Morgan talks about how MSA can make its clients “game ready” for opportunities that may arise by saying, “It is always advisable to run your business such that you can choose to exit when a lucrative opportunity comes along. For us, being “game ready” is being prepared to portray your business in the best possible way to the ideal buyer without waiting around for your accounting department to catch up. You never know when the tide might turn and buyers might lose interest due to prolonged negotiations. This is more pertinent now than ever before. 2023 is a good year to begin preparing your business for sale. We can help your business get ready and propel you toward the next phase in your business journey.”
Businesses preparing to get acquired or exit in 2023 will have to contend with the challenges that the slowing global economy brings. However, by looking at the business as a whole and bridging the gap between current capabilities and the qualities that buyers are looking for, business owners can prepare themselves for the opportunity of a lifetime.
Morgan Shaw Advisory helps business owners realize their personal and professional ambitions. It works with owners of small and medium size companies to maximize the value of their business and make it less dependent on them. Readers can contact MSA at +61 1300 980 344 or info@morganshawadvisory.com for more information about its consulting services.
Founded in 2013, Morgan Shaw Advisory is a boutique M&A consulting firm based in Sydney, NSW. The company’s specialty consulting services include advisory boards, mergers, acquisitions, selling a business, transformation, executive coaching, due diligence, business evaluation, improving business performance, growth strategy, exit strategy, and succession planning.
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For more information about Morgan Shaw Advisory, contact the company here:
Morgan Shaw Advisory
Graham Morgan
+61 1300 980 344
info@morganshawadvisory.com
Suite 506, Level 5
83 York Street
Sydney NSW 2000
