If you are hoping to sell your consulting firm, either now or in the future, it’s important to understand how the size of your firm can impact your ability to sell it.
This guest post by Tony Rice, founding Partner of Equiteq, shares his insight and research on why the size of a firm matters when an owner wants to sell it.
Equiteq, a leading Mergers and Acquisitions (M&A) advisor for consulting firms, helps firm owners grow profits, revenues, and equity value. They also guide firm owners through the process of selling their firms for maximum value.
Does Firm Size Matter?
How large or small should your firm be before you sell it? Mostly, that depends on the result you’re hoping to achieve with the sale.
Firm size does not equal value.
For example, you don’t want to grow your business to a level that could make your firm less attractive to buyers. Nor do you want to live with the false hope that your <$1m practice will sell easily.
Firm size does matter, and it is an important variable (among many) in preparing your firm for sale.
There isn’t one answer about the importance of firm size to a sale, but it is possible to consider the question from different market perspectives. [Continue reading]