Thought Leadership on Ownership Transition presented by Prairie Capital Advisors, Inc.
Ownership transitions are complicated transactions requiring the skills and knowledge of a wide variety of deal professionals. Like a winning sports team, a successful transaction advisory deal team requires the contribution of individual players at the right time and in the right measure throughout the deal process to successfully execute and close a transaction. A smoothly functioning deal team assists the business owner determine transaction goals and objectives, prepares the Company, plans and executes the transaction process and anticipates and mitigates deal problems. Properly addressing all of these factors will increase the speed to close and will ultimately contribute to the overall success of the transaction.
Most business owners have existing groups of advisors with which they consult when they have specific business needs or face problems. Typically these groups include the owner’s accountant and attorney. While these advisors and counselors are helpful in the day to day operation of the business, additional specialized knowledge is often required in ownership transition transactions, and the business owner may need to find professionals with ownership transition expertise. Finding advisors with extensive transaction experience honed through the completion of similar deals is critical to successfully execute such a transaction. When building a specialized deal team, it is essential that the owner form a comfortable relationship with each professional to develop respect and trust in the advice they deliver.
There can often be significant overlap in the skill sets and experience of the individuals on the deal team, and it is important that the roles and responsibilities of each professional is clearly defined. One professional, usually the investment banker, functions as the team leader to martial the resources and orchestrate the overall transaction process.