03 Mar Preparing a Company for the M&A Process – Part 3
Get to the High End of the Price Range through ‘Stage Management’. George P. Shenas, Esq. hosts David B. Duval, President of Claiborne Advisors, Inc. George and Dave discuss the actual posturing of a company for sale, including steps typically taken by investment bankers to position the seller at the high end of the market range. Dave stresses that sellers « fighting the tape » in terms of setting the price range is counterproductive, because, practically speaking, buyers determine the range in which company’s value will fall (this is not to say that a seller can’t improve its price within that range by « stage management »). George then asks about the delicate task of permitting the buyer to talk with key customers, and Dave shares his preferences on timing and execution. Finally, Dave shares his views on maintaining confidentiality during the M&A process.