Where do middle market business owners fit in the economic downturn?

Turn to the front page of any newspaper across the country today and you can read about our seemingly endless economic woes; the wall street free-fall, government bailout plan, the credit crunch and of course, lagging consumer confidence and spending power.

While it is easy to focus on the short-term factors that can affect your business, it is critical that business owners in the middle market continue to focus on long-term business drivers that improve overall business value. Factors such as growth, innovation and effective cost management can positively affect overall business value in the long run.

Forward thinking middle market business owners know long-term value drivers, and not stock or credit markets, determine the overall business value and eventual sale price of a company. That is why they continue to pursue long-term strategic objectives with the same vigor today as they did before the economic downturn.

VERCOR, a middle market mergers and acquisitions firm, has successfully helped business owners create liquidity through acquisitions and selling their company for over two decades throughout various economic cycles. We help business owners focus on the long-term factors that affect their overall business value while enabling them to continue focusing on the day-to-day operations of their company. We have relationships in place to help maximize capital when it is the right time to acquire a business or when you get the right price to sell your company.

The good news is that, despite the economy, now is still a good time to consider selling your company. This is because:

-Valuations in some middle market sectors are still at historic highs
-Sales prices are not based on the stock market, but the value of individual businesses
-There are more buyers available than there are quality deals
-VERCOR is there to help you determine the fair market value of your company and will persevere until the deal is done

Now is also a good time to acquire a company in order to grow your customer base, reach new global markets or gain access to a broader talent pool. This is because:

-Opportunities for organic growth are slowing
-Finding and retaining top talent is a long and challenging process
-VERCOR is there to help you source acquisition targets that are the best strategic fit for your business

Great things are still happening in the middle market despite the economy. Middle market companies are growing; they are innovating and moving forward to long-term success.

Mark Jordan is the managing principal of VERCOR, an investment bank that creates liquidity for middle market business owners. He is the author of Enhancing Your Business Value…The Climb to the Top, Selling Your Business The Hard Easy Way and co-author of The Business Sale…A Business Owner’s Most Perilous Expedition. He is also the author of numerous articles. For more information email him or visit www.vercoradvisor.com.