Video: When Selling Your Company, is a Private Equity or Strategic Buyer Best?

Written by Mike Marks on Tuesday, 15 August 2017. Posted in Business Strategy, Distribution

Is it better to sell your distribution company to a private equity firm or a strategic buyer? I’ve been getting this question a lot lately, especially after announcing IRCG’s partnership with Modern Distribution Management to hold an M&A Executive Workshop this fall.

The answer is that it depends on how active or inactive you’d like to be in your company after selling. Different types of buyers typically have different expectations in terms of your continued involvement; watch the video below to learn the questions you’ll need to ask yourself before making this decision.

Did you enjoy listening to Mike speak about how to avoid common problems in M&A? Join us for IRCG’s and MDM’s M&A Executive Workshop. Sign up today.

About the Author

Mike Marks

Mike Marks

Mike Marks co-founded IRCG in April 1987. He began his consulting practice after working in distribution management for more than 20 years. Over the years, his narrow focus in B2B channel-driven markets has created an extensive number of deep executive relationships within virtually every business vertical in construction, industrial, OEM, agricultural, and healthcare.

Mike has led project teams that improve market access by aligning resources to growth opportunities serving manufacturers, dealers, and distributors. Clients have ranged from small privately owned firms to many of the industry’s market share leaders. Ownership structures have included owner-operators, private equity, ESOPs, and publically traded firms. Mike is proud of the teams work and the confidence clients have shown with additional project work.

He has written extensively, and is frequently quoted on many industry issues. He has substantial board experience on both public and private distribution firms. His contributions to the field include serving multiple terms as a Research Fellow with the National Association of Wholesaler-Distributors, permanent faculty at Purdue University’s University of Industrial Distribution, eight years as Graduate Adjunct Faculty in the Industrial Distribution Program at Texas A & M University, and rendering several precedent-setting expert opinions in contract disputes between manufacturers and distributors.

Prior to forming IRCG, Mike held the position of Executive Vice President at Lex Electronics, an $800 million vertically integrated electronics distributor in Stamford, CT. Mike’s path to management in his early career was through increasing responsibilities in sales and sales management. He also completed a tour of duty as a manufacturer’s representative.

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