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Monday, September 27, 2010

Now is the Time to consider exit for business owners....

Hi friends,

Asia continues to provide an attractive investment environment for the rest of the world as the developed market continue to struggle amid the nascent global recovery. Business owners who are considering an exit strategy for their businesses should give this a good and serious thought. Such opportunity do not always exits, not to mentioned that part of any successful exit for a business is the Timing.

Any existing business will have to exit one day and businesses exit for a variety of reasons. It could be due to either one or a combination of these reasons; retirement, succession, diversity of assets, capital for growth and association with a larger firm.

At the same time there are also a number of reasons why Asia has been looked upon to be so attractive. Due to its historical growth and development, Asia today has reduces it dependence on US and Europe for trade. Although there is still a fair share of trade with these two trade partners, the growing domestic market in Asia and intra-Asia and its growing purchasing power has made Asia a key growth area. In addition the valuation in Asia has become more attractive. Risk level inclusive of corporate governance and transparency is also improving especially after the Asian financial crisis. Many countries have made improvement efforts to strengthen their economy. However having say this, it does mean that there is no risk in investing in Asia. Obviously there are still risk but the favourable compelling factors may still worth the deal sourcing in Asia. From a private equity perspective Asia as a whole is still under-served relative to its counterparts in US and Europe. Hence private equity are all scouting around for good deals.

To evaluate an exit for any business, there are indeed many important factors to consider but one that is not often addressed or discussed by owners is Timing. There are 3 key major points to take note in regards to timing:the general economic environment, the outlook for your company's product or services and the prospect and performance of your company. The ideal time for the sale of a company is when all the 3 factors are on the rise. It may be rare situation where all these 3 factors are reaching its peak. But nonetheless it is always important to keep this option in your business radar screen. With the many private equity firms looking for good deals, business owners should do their homework and capitalize (seize the day!)the opportunity that is before them now.

Looking out:

1) Successful business owners who are considering an exit from their business through a trade sale.

2) Start-up company in Interactive Advertising looking for funding and business guidance.

3) I have a friend who is an experience HR manager looking out for career opportunity. If you know of any opportunity out there, appreciate that you let me know.

Regards,
KH

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