Is Four Pillars The Right Fit For Your Company?
When it comes to selling your business, there are a lot of factors that go into making this a successful decision beyond your company valuation.
It often helps to align yourself with someone who’s “done this before.” But selecting the right partner that will balance your best interests as well as theirs is easier said than done.
In this article, we will discuss the key factors that determine whether or not Four Pillars might be a good fit as a buyer.
What decisions do you need to make to sell your business?
One of the most important decisions you need to make about selling your business is, what’s next for you? To help organize this decision, consider the following questions:
How fast do I want to exit the business?
This pertains to how quickly you’re looking to sell, as well as defining your role within the business after the sale and how long you plan/want to stick around.
What happens to the business once I leave?
Are you just selling to a transactional buyer that just plans to strip the business down and wring it of all it’s profits? Or are you interested in preserving the legacy you built by ensuring the next owner will invest in its growth?
What happens to current employees?
How do I maximize the value of my organization?
Do you have all your retirement and exit planning affairs in order?
If you’re curious about ways to increase the value of your business, we have a blog post about this you can read here: (link).
How do you determine to whom to sell your business?
Once you outline your preferences and options for exiting your business, you can start to evaluate the right type of buyer to align with.
The most common options for aligning with a buyer are:
Sell to a private buyer or private equity firm
Sell to a strategic buyer, which is typically another company
Transfer the business to a family member and employee
Convert the business to an ESOP or sell to an ESOP
Close the business to liquidate all assets, and gather all savings
If you believe that the first option, selling to a private buyer or firm, is a route you want to explore, it’s worth understanding if your business and Four Pillars might be a good fit.
How to determine if Four Pillars is the right buyer for your company
How aligned is our approach to business with yours?
While getting the best price is the primary focus when it comes to selling your business, it is not the only factor to consider when evaluating whether a particular buyer is the right one or not.
We structure our critical business decisions around 4 key pillars:
Relationships as a cornerstone for success
To build strong relationships, we refer to our motto, “Do what you say and say what you do.” By living our motto, we help to develop mutual trust.Challenge the status quo
We don’t seek change simply for the sake of change. We look at each situation critically and objectively in order to determine what the business does well and should continue, and to identify which practices and processes need improvement, or perhaps to be abandoned altogether.Servant leadership
We believe that the essence of servant leadership is that each individual should seek to serve the greater good. That might mean meeting a project deadline, cultivating a new sales prospect, or developing an individual. Teamwork, collaboration, and the sharing of decision-making are inherent in servant leadership.Persistence
Getting a deal closed requires persistence. Managing a business requires persistence over the long-term. No matter which perspective it is, our hard-working and intrinsically motivated natures help us overcome obstacles and achieve our objectives.
How will we determine if you are a good fit for us?
Is our knowledge and experience something you and your management team can benefit from?
We seek opportunities where our knowledge complements that of the owner and management team. Our purpose is not to micromanage your business – you know your business better than we do. But we do want to be involved and play an active role in helping to build the business collaboratively.
While you know the subject matter of your business and your industry better than anyone, we bring our institutional knowledge of financial, operational, and growth strategies that can complement your business for untapped potential.
As a baseline, we look for businesses who meeting the following criteria:
There is untapped potential and desire for growth
A majority of the business will be sold – we do not make minority investments
The business is generating $3 million or more in EBITDA or cash flow – if you’re not quite here yet, don’t be deterred from having an initial conversation
There is a desire on behalf of ownership to look for a true partner to help with a smooth transition and one who invests in the future of the business vs just stripping it down to its assets
Four Pillars buys companies with the specific purpose of continuing to grow them and reach their full potential. Because of this, being on the same page with the owner and management of a company is crucial to our success, and the success of the business.
If you think Four Pillars and your company can successfully work together, then you can reach out to us today for more information about our services.
Let’s have an exploratory call.
Most private equity firms are focused on exploiting your company for as much monetary gain as possible. That’s not us. We want to ensure this is a mutually beneficial agreement for you, your employees, and our firm.
On our first call we would want to hear about:
Your values, why you started this business, and what you love about it
Your goals and hesitations in finding a potential partner for growth
We’ll share more about our approach and the process
We will not get into financials unless you absolutely want to.