This spring, the first annual CriticalPoint Business Summit brought together current business owners and industry specialists to explore and shed light on the M&A process. One highlight was a panel discussion titled “The Experience of Selling Your Business,” featuring CriticalPoint Founder Matt Young and two business owners who shared their personal M&A journeys, offering vital insights for anyone considering an exit or a recapitalization.
Journey One: A Full Exit
After more than thirty years building his business, in the tooling and manufacturing industry, Peter Simpson (name changed for privacy) was ready to explore the possibility of selling. It was a new process to him, and he was surprised at how much work it required. For about six months, he felt like he had two full-time jobs. Therein lies his first insight; if you’re preparing for an exit, find the right advisors and prepare to be busy.
Fortunately, all that effort paid off. Peter sold his business to a private equity-backed strategic buyer in a deal that included a transition period. The sale was deeply emotional for Peter, marking the culmination of decades of dedication. He was happy with the terms, but the expected commercial integration and support from the larger operating company didn’t unfold the way that everyone had originally envisioned. This underscored another lesson from his story: how important it is to scrutinize any potential buyer’s intentions and capabilities and align it with your own expectations.
Peter’s last bit of advice to others considering an exit was not to wait too long, because the process might take longer than you expect—or the right buyer might be ready right now.
Journey Two: A Minority Recapitalization
David Burton (name changed for privacy) founder of a rapidly growing company in the energy industry, took a different path. His goal was to take “some chips off the table” while retaining complete control of his business to capitalize on its significant growth trajectory. This was achieved through a minority recapitalization from a private equity firm.
The partnership has been a success, perfectly aligned with David’s desire for a partner who offers help and advice without trying to operate the business or force a merger. Their interaction is at the board level, focusing on strategic direction rather than day-to-day details. David feels no loss of control and has no regrets about this transaction.
For owners hoping to achieve something similar, David made it clear that choosing the right partners is the most important step. He worked with a comprehensive team, including CriticalPoint, attorneys, accountants, and wealth managers, relying on them to guide him through the entire process. In addition to assembling the right team, David advised owners to clearly define their objectives. This will help your advisors guide you, and help you realize when the best outcome is achieved. He also recommended running your business as if you already have outside investors, maintaining clean books and unquestionable expense practices, all of which will help streamline the transaction process.
Talking Shop and Sharing Wisdom
As the panel continued, Peter and David discussed how important it is to find the right advisors, and then to trust that they will get you the best possible outcome, even if it differs from your initial expectations.
They also talked about the potentially tricky decision of when and how to communicate M&A news to employees. The right answer will depend on your company culture and the nature of the deal you’re announcing.
These real-world accounts gave attendees of the CriticalPoint Business Summit valuable glimpses of the complexities and rewards of M&A. Whether you’re considering a full exit or a strategic recapitalization, careful planning, clear objectives, and the right advisory team are crucial for a successful outcome.
To learn how CriticalPoint can help your business, please contact us.
Managing Director, Business Development
About CriticalPoint
CriticalPoint provides tailored financial solutions through a trusted platform, combining the best of Investment Banking and Private Capital. Backed by decades of diverse transaction experience, the CriticalPoint team delivers the insights clients and stakeholders need to achieve superior outcomes. Founded in 2012 by senior M&A professionals with a passion for deal-making, CriticalPoint stands out for its deep expertise in Investment Banking—including mergers and acquisitions, capital markets, deal sourcing, special situations, and valuation advisory—as well as in Private Capital investing, with a focus on corporate divestitures. When business owners, management teams, private equity firms, and corporate sellers reach a defining moment across a range of industries, they rely on CriticalPoint’s proven expertise.
