By: Matt Holtz | Senior Director
As we unwind from the exhilaration of the Super Bowl, an intriguing parallel emerges between the spectacle of this sporting event and the journey of a small business owner preparing for a sale.
The two might seem worlds apart, but there are some striking similarities between the Super Bowl and mergers and acquisitions (M&A). From strategy and preparation to flawless execution, both your favorite sports team – and your advisory team are tirelessly dedicated to your big win.
Preparation and Strategy Lay the Foundation for Success
The road to both the Super Bowl and a successful business sale is paved with meticulous preparation and strategic foresight. Just as NFL teams dedicate months, even years, to analyzing strategies, honing skills, and perfecting plays, businesses poised for M&A engage in rigorous due diligence, financial scrutiny, and strategic positioning.
This groundwork is not just about immediate gains but shaping the future. Like seasoned coaches and managers, business owners must envisage and sculpt their path 2-3 years ahead, ensuring their business is as attractive and prepared as possible for prospective buyers.
Remember, the victors are often the strongest and the most prepared. You should be investing in fine-tuning your business now to ensure it is in peak condition when you decide to sell.
Teamwork and Collaboration are the Heart of Victory
Triumph, in both the Super Bowl and the sale of a business, stems from unity and effective leadership. On the football field, it’s about the seamless partnership between the coach’s strategy and the players’ execution.
In business – and more specifically in M&A, it’s about the critical inputs from advisors, legal teams, and various stakeholders, each playing their part to facilitate a harmonious exit. If one piece is out of alignment, it impacts the entire process.
Business deals take time. You will be working with your advisory team for months, and those months can either be productive and smooth, or they can be bumpy and downright treacherous. It all depends on the level of teamwork and collaboration involved.
Navigating the Field with Proactive Risk Management
Risk is an inherent element of both high-stakes football and M&A activities. A single oversight can dramatically alter the game’s outcome or the success of a business transaction. The world of sports, now heavily influenced by big data analytics, showcases the delicate balance between calculated risks and reactive, emotionally charged maneuvers.
On the field and in the boardroom, those unnecessarily aggressive choices can lead to last-minute losses. Imagine if you are involved in a round of tense business negotiations and you get aggressive, adding extra stipulations to your counteroffer. It’s likely that the other party will react negatively. This step may seriously hinder – or even end – the negotiations altogether.
Business owners, therefore, must leverage their strengths and the expertise of their advisory team to steer through the M&A landscape wisely.
Performance and Execution–The Final Play
Ultimately, the effectiveness of execution under pressure defines success in both the Super Bowl and M&A transactions. The ability to make decisive, timely actions and carry out plans with precision is what separates the champions from the contenders.
In business sales, as in football, the culmination of strategy, preparation, and teamwork is realized in those critical moments of performance and execution. By drawing these parallels between the Super Bowl and the sale of a business, we can appreciate the depth of planning, resilience, and strategic execution required to succeed in both arenas.
For small business owners, understanding this analogy can provide valuable insights into navigating their sale process with the precision and dedication of a Super Bowl team aiming for victory.
Start planning for your sale today. Meet with Embarc Advisors and take the first step toward building an important relationship that will strengthen your business today and help you walk away in the best position possible.
