A great question was asked by John Hyde on WhatTheyThink? And I think my answer is something that every entrepreneur and business owner should see.
He asked: How is it possible that corporate giants AT&T and Time Warner reach an agreement on the terms of a merger in only two months while many small business owners languish over deals for six months, nine months, or even years?
My answer is simple: Corporate giants are more organized, prepared and they engage in effective communication to avoid wasting time. SMEs, entrepreneurs and business brokers should take note in order to move deals quicker!
Best of luck selling,
Reply from Nunzio Presta
Added on Jan 15, 2017 08:29
Thanks for the comments everyone! Here are 2 offline comments I received: 1) My view is proven "System" and "Methods" are used in bigger corporations. With Smaller businesses there are more people and emotions, which can make things lag on. 2) In response to ^: Small business owners are often emotional about their businesses and hem and haw over whether they even want to sell. They are often concerned with how the acquiring company will treat their "baby" and other emotion-based concerns. Large corporations have none of that. It's simply a financial transaction.
Reply from Mel C
Added on Feb 08, 2017 12:10
Reply from RealEstate2017
Added on Jan 13, 2017 13:12
The infrastructures of corporate companies are systematically ready for acquisitions and mergers at any given time. They wait for the right fit, and are prepared to move fast as this is part of their business model, and they have specialists in place for mergers. Corporate companies have analysts and researchers that work with economists, and I am sure they pull in all the right expertise from all their resources to ensure that when an opportunity presents itself, they are equipped to move in a timely manner. Small business's are not typically wired that way, and understandably will take longer, unless mergers and acquisitions are part of their business plan. I don't think mergers are typical or as common in small business's than corporate companies.
Reply from Arshad
Added on Feb 07, 2017 01:39
Agree with Nunzio Presta with addition to risk factor is much higher in case of small businesses.
Reply from TimFio
Added on Jan 13, 2017 11:35
Good point. I would only add, the board and managment of publicly traded companies do have shareholders to please. Its in their best interest to conclude in a timely fashion as share prices can languish on uncertainty. Especially in the large cap space, where billions of dollars can be gained/lost in minutes on market capitialization.
Reply from Jerry L
Added on Jan 13, 2017 11:40
I agree with both points from Nunzio and Tim. Great post.
Reply from Bill W
Added on Jan 13, 2017 11:42
Most corporate giants are alway anticipating some sort of merger to take place at any given time, therefore, they are always ready and prepared! Small business owners on the other hand are not always thinking and planning for that exit (which in my opinion is a big no no).
Reply from Pamela Firkin
Added on Jan 13, 2017 11:44
Thumbs up to this post! Food for thought. Pam.
Reply from Richy Markoff
Added on Jan 13, 2017 16:53
Great response, RealEstate2017. However, the small business for sale world is poised for explosive growth due to the large number of baby boomers who are expected to put their businesses for sale as they face retirement. Corporations are definitely wired differently, but small businesses need to prepare and become wired for this unprecedented shift, especially because more and more people are seeing value in buying preowned businesses rather than starting them. I've been following this space for a while and can appreciate what a marketplace like BizON is doing. Liking this post a lot - thanks for starting the thread Nunzio.