It seems to be a high season regarding valuations in the ICT industry.
We have had many deal closings during the last 18 months and there will be more to be announced during the end of the year.
Is now the right time to sell?
That’s one of the most challenging questions regarding M&A. Moreover, no one knows the correct answer. When we look back in time, we can evaluate if it was the right time, but then it’s of course too late.
If a company is performing well and growing, most likely it will attract interested buyers with enough cash in hand. If a company is not doing financially well or it is working on a technology niche in a decreasing market segment, it’s usually the opposite case. These companies have difficulties in finding a new owner.
In short, now is a perfect time to find out the valuation of your business and discover potential buyers. If you do it, you don’t have to regret later why you did not act.
The real value
The second question, or often the first one, is: what’s the value of our company or business unit? That’s not a difficult question for us. It is one of the questions we will answer precisely to our customers.
To answer, we do the valuation math and check the closed deals in that specific industry segment. What we have as an outcome is an indication of the real value.
The fact is that we only have the real value when we have the actual offers on the table. That’s the value we call as the market price of a company.
The market price will be different in the future, and it probably would have been different in history too.
That fact is that sometimes the value is higher than the owners expected and sometimes lower. If it is lower, the owners should evaluate their expectation compared to the hard facts. The more prepared the company is, it’s easier to accept the facts and make a rational decision.
If the owners are entrepreneurs, the risk is that their decision-making path goes through strong mixed emotions, and they don’t accept the hard facts, especially if the offers are not what they expected.
There is a risk following a possible wrong decision, that the markets for their company gets even worse, and they lose more value and time. You never know about the future, but for sure the timing is today pretty good.
Finding the fact
If you want to test how valuable your company or business unit is, we are happy to tell you more about our experience and how we could help you to find out “the hard fact” about your business.
On top of finding out the market value, you will get other valuable information about the market you are operating in.
Our approach is unique in a way that it adds value to the shareowners without pushing them to decide when they are yet not ready for it.
If you are interested in to find out the value of your business, let’s talk.
Then you can decide is now the right time to sell.