JULIE VAUGHN BIEGE

Director, The ChemQuest Group, Inc., Cincinnati, USA

Abstract

The article delivers simple and yet powerful steps to take when selling a chemical business. It emphasizes the pivotal role of meticulous preparation and the power of having external M&A professional guidance in finding the ideal buyer to maximize your company’s selling price. It underscores the crucial role of finding and quantifying synergies in each buyer’s hand to drive price, and it offers a blueprint to differentiate a seller’s approach between strategic and financial buyers. This is an actionable, common-sense agenda to amplify your company’s worth by turbocharging operations and slashing debt pre-sale. The article concludes by emphasizing the vital importance of showcasing the value hidden in your commercial portfolio and innovation pipeline, highlighting the importance of demonstrating future growth and commanding a higher price. These invaluable insights will help you sell your business at a premium price. Ignore it and risk leaving half of the money on the table.

While the number of M&A transactions in the specialty chemicals space has normalized back to pre-pandemic levels following robust activity in 2021 and 2022, valuations in 2023 have actually increased over last year’s levels. Opportunities clearly abound for sellers that are well-positioned to deliver the best value proposition to potential buyers.

But how do you know when it’s time to sell your company (or a portion thereof)? What are the various opportunities and potential pitfalls involved in this extremely complex process? Can you expect a quick sale once you’ve made the decision?

The answer to that last question is invariably: Not likely. After all, when selling a home, it’s a rare homeowner who can expect to net a top price without first making some improvements. Indeed, savvy home sellers often turn to professionals who employ a range of approaches to identify target buyers and maximize value. Whether a simple light refresh or a more extensive remodel, the extra investment in time and resources invariably leads to a higher selling price.

Similar concepts apply when selling your company or business unit. Shor ...