RSM Resources

Owners of two private companies complete transactions on the same day to sell their respective businesses to two different buyers. Thecompanies being sold are nearly identical. They offer similar products and services, serve similar markets and have similar revenues and profitability. Yet one sells for $75 million while the other sells for $105 million. What could account for this difference?

Despite surface similarities, there are probably hundreds of factors that make these two companies more — or less —attractive as acquisition candidates, thereby increasing or reducing their values to a buyer.

Sellers need to understand these differences in order to get what their business is worth, but sorting through such complexities can be difficult without significant merger and acquisition (M&A) experience. For this reason, many owners of small and midsized businesses seek professional representation when selling their companies — giving themselves a number of advantages in the marketplace.

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