The Transition Companies Denver & The Advantages Of Leveraging. Sellers M&A Advantage By Gene Sartin CEO.


Gene Sartin of The Transition Companies often reminds clients about the advantages of hiring an effective M&A firm in helping to sell their business. His formula is, one plus one equals three, maybe four and perhaps even five or more. This he explains, is the math behind an effective win win outcome for both Buyer and Seller in every Mergers and Acquisitions transaction. The goal of the Buyer in acquiring Companies is upward growth Transition. The ultimate objective is to create shareholder worth over and above the sum of two Companies as separate entities. The two Companies together, although both in their unique and individual Transition are dynamically worth more than two separate Companies. That is the theory behind leveraging in meaningful M&A deals.
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Gene Sartin points out to clients that these principles are even more important to Companies when times are challenging. Stronger Companies want to purchase other Companies to create a more competitive, cost-efficient entity. The Companies coming together hope to take hold of a greater market share. The Companies together also can usually achieve greater efficiency in unison. The potential benefits in these deals for sellers is that they can often survive hard times and be far more profitable by being part of another business framework.
Gene Sartin also explains that the words Mergers & Acquisitions, although connected in most discussion of buying and selling of companies, actually mean slightly different things.

In the pure sense of the term, The Transition Companies client learns that a merger happens when two firms, often of about the same size, agree to go forward as a single new company rather than remain separately owned and operated. Often a new name comes to surface. ExxonMobil is a good example.

When one company purchases other Companies assets or stock and clearly establishes itself as new owner, that purchase is called an acquisition. Being bought out often carries negative connotations when none may actually exist. It is therefore important that every contingency be well thought out and planned for in advance of any Transition to new ownership.

Our goal at The Transition Companies is for each party, both buyer and seller to realize the win win situation by providing effective and professional planning and resources so that one plus one really does become three, four, or perhaps five or more in every deal.

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