The Emerging Power Practice: Exit Planning, Value Enhancement and M&A Services / by Kerri
Traditionally viewed as three distinct practices Exit Planning, Value Creation Consulting and Investment Banking, the emerging Power Practice of tomorrow embraces the paradigm shift of a truly integrated approach to helping sellers extract maximum value from the sale of their company as well as allows Intermediaries a deeper more longitudinal relationship and greater fee participation and deal flow over time.
I was seated on the panel discussion on this topic at the AMAA conference in Chicago on July 24, 2014 addressing an audience M&A advisors.
The Moderator was Craig Dickens – CEO, Merit Harbor Group
The Panelists were:
Peter Christman – CEO, The Christman Group
KevinHanson – CEO, The Ashton Group
Kerri Salls – Managing Director, This Way Out Group LLC
Kathleen Richardson-Mauro – Co-founder, Richardson-Mauro & Johnson
- Plan – The need for a plan
Preparing the seller
Get over resistance – why entrepreneurs don’t plan –
Tangible results of a plan on deal completion
- Un-siloing silos – the need for an integrated deal team.
Where collaboration leads to better results
Setting ego aside
Who is the quarterback.
- Tools of collaboration
Data share – exit plan yield % done deals etc.
Integrated deal team = better results etc.
- The Emerging Power Practice
Identifying true targets. Create your own deal flow
Tatum Thesis example
Giving the seller a plan or empowering the seller.
Marshaling the difference between advisory and sell-side activities
The hand-off from plan to value creation to execution and seller readiness
Cash Flow implications to a Power Practice.
The consensus on the panel was that owners need a team to get to the deal and to complete the deal. And they need exit planning and value creation expert guidance much earlier than they need transaction guidance. With a power practice team on board, the client benefits from advisors being fully up to speed and engaged on their issues, their goals, their criteria long before the intense transaction cycle begins. Both the client and the advisors benefit from an integrated team collaborating for better client results. That’s the emerging power practice.