Our goal throughout the M&A process is to maximize the value our clients receive at closing. To that end, we believe clients and owners should be fully aware of the costs associated with holding their companies for too long.
In practical terms, the time to sell a privately-held company is not as clearly defined. Finance theory holds that when the risks of owning a company are greater than its rewards, one must consider the sale of that asset. The question then remains- at what point should one consider the sale of a privately held company?
We believe that every owner must compare her internal reward of owning and operating a company, on a daily basis, with the relative risks of ownership. One must ask whether she is actively involved in the company. Owners must also consider whether they have the passion to continue owning or operating their businesses. We advise owners to sell their operations when the risks of running the company are so great as to outweigh the benefits.