Text by Pyr Marcondes, Senior Partner at Pipeline Capital.
But at the end of the year? Yes. And with the perspective of a first semester always a little drowsy due to the Carnival syndrome in Brazil? Yes, exactly.
But why?
I explain.
The process of selling a business can take months. Or even years.
From the day you make the effective decision to sell until the day you close the deal and receive your first down payment, the process is medium or long term.
If you start right now, you won’t sell right away. Although a series of M&A processes are still active right now, in this period at the end of the year and the beginning of next year, they are negotiations that started way back and should be concluded now or at the beginning of 2023. But if you start now, you can, yes, imagine selling your company sometime next year. Reasonable, isn’t it?
Depending on your company’s degree of readiness for sale, that is, the more or less mature stage for the M&A of your business, you may have to give the house a good tidy up before selling. And that takes months. Better to start soon and not later.
If your company is more ready and mature, it’s a good time to start sounding out the market, listening to potential buyers, taking exploratory and preparatory actions, to effectively go to market in the first quarter of next year.
The later you start, the later you will actually sell, pushing the odds to 2024 or 2025.
And an important fact here: the economies are recovering their dynamics, little by little, but they are already there. Investors or potential strategic investors continue to see opportunities. They held back on investments and acquisitions, but did not stop analyzing and selecting opportunities. Exactly so, at this moment when the economy is showing the first signs of recovery, to go back to shopping.
This is already happening.
Because now? That’s why.
(*) For those who tell me that the North American market expects high interest rates from the FED in the coming months, I comment that the financial market has already computed this projection and will follow its pace with this as a spreadsheet data. There is no surprise factor. Inflation in the world’s largest market will be controlled in the coming months and in less than a year the country’s economy should be back on track.
Text by Pyr Marcondes, Senior Partner at Pipeline Capital.
Follow news through the website https://pipeline.capital
and also from LinkedIn
and Instagram
