The team at AMP Business Valuations continues its dive into the intricate world of business transition, shining a light on the pivotal role of business intermediaries. This month’s feature brings us the expertise of Tim Oliver, a well-respected and trusted lawyer and Certified Exit Planning Advisor (CEPA) at Grogan Hesse & Uditsky.
Tim started with Grogan Hesse & Uditsky 10+ years ago after completing law school. He was one of their first associates and has since become a partner at the firm. Tim has enjoyed working at Grogan Hesse & Uditsky as they have helped shift his focus from litigation in law school to corporate law with a focus on outside general counsel and mergers and acquisitions (M&A) services for closely held businesses.
Grogan Hesse & Uditsky has a large contingent of clients in the medical space, specifically dental groups. This background as general counsel allows Tim to get ahead of the competition. As general counsel, Tim takes the time to go through the business’s structure, operations, and contracts with key personnel, customers, and vendors prior to any M&A activity. His focus is to ensure the practice is transferable for a merger or acquisition in hopes of easing the process when the practice is listed on the market. In this way, Tim differentiates himself from his competition. Most merger and acquisition attorneys are often focused on the transaction. They want to get in and out quickly, moving on to the next transaction. Tim prefers to start with the business prior to the transaction and before the business is marketed for sale.
As an example of his work and value add, Tim referenced an active deal. Tim was brought in late to the process. Ownership was transferring from father to son, but the purchase was financed through a bank. Tim spotted an issue with the company structure that could raise concern over the rights to the stock. The parties paused the negotiations to correct the issue. Tim is currently working diligently to restructure the entity to allow the deal to move forward. He believes that the deal will get done in the end because both parties are willing to come back to the table and present a clean deal for the bank. This is not always the case when selling to a third-party buyer and highlights the work Tim does at the front end to enable a deal to move forward smoothly.
As part of Tim’s process, he encourages his clients to consult with business valuation experts and financial planners. He believes it is important for a business owner to understand the value of the business far in advance of a potential sale. Understanding the fair market value of the business will make it easier to identify a good opportunity. Additionally, Tim encourages his clients to work with financial advisors to determine their wealth goals in accordance with their desired lifestyle post-exit.
AMP agrees with Tim and the importance of understanding business value prior to marketing a company for sale. At AMP, we believe that an honest, thorough business valuation can set the groundwork for a successful transition. AMP also advises clients on value growth strategies to achieve their desired outcome based on insights into hundreds of private company transactions each year.
Grogan Hesse & Uditsky is a law firm based in Oakbrook Terrace, IL. The firm’s practice areas include appellate, corporate, estate planning, commercial litigation, securities, and real estate.
AMP Business Valuations is a leading business valuation firm with locations in Chicago, IL and Denver, CO. AMP specializes in valuations for small and medium-sized businesses within the context of M&A. AMP also offers value growth services to enhance value in collaboration with attorneys, financial advisors, CPAs, and more.
