Are you contemplating a transition for your business?

How well, or not, that process might play out could depend upon the quality of your connections, according to Nick Olsen, managing director of the M&A practice, Green Bay, Wisc.-based Cornerstone International.

Olsen would know about making the right connections as Cornerstone averages 150 M&A deals a year.

“Connection is definitely what I do. Internally that’s the problem we solve at Cornerstone,” he told BTF Insider.

“Whether it’s M&A or from a business owner perspective, it’s about ‘who do I connect with? How can I solve this problem,’” he said.

Cornerstone has a pool of 27 firms and over 100 advisors in their group. “We can rely on each other - we have an abundance mindset - having a network of peers; people you can trust.”

Olsen said the Cornerstone network has surpassed over $1.1 billion in total enterprise value in the past two years and changed the lives of over 300 business owners.

Olsen correlated the connections mindset to the entrepreneur who is focused on running their business. “You get to that point and think, I’m tired, maybe it’s time for the next phase of my life and company. Great, [the owner] wants to sell yesterday - now what do they do?”

Olsen referenced events like the Business Transitions Forums that can bring the supply chain of entities involved to make those types of meaningful connections, along with the educational aspects.

Moreover, “there’s a profession out there that helps businesses sell their companies - instead of trying to go at it yourself,” he said.

“A business owner tries to do this themselves and also run the business - it’s like two full time jobs. That’s not a successful way.”

According to Olsen, a lot of businesses get unsolicited offers that are not necessarily what they seem to be. This is where experts in business transitions can “help identify opportunities that could increase the value of your business. This could take six months or more to figure out,” he said.

“We try to peel back the onion: What are the areas of opportunity - when are you ready to sell? We’re here to help educate…connecting [the business owner] with the right people,” Olsen said.

An M&A checklist of making the right connections and assembling an optimal team can include:

• Business coach
• Advisor
• Attorney
• Accountant
• Wealth Manager

Olsen said there are many angles when looking at where a business is at and how it might emerge on the other side of the transition process; posing questions such as “what will equity look like if [Business owners] are hoping to get a premium multiple for the company.”

However, “the business owner wants to sell now and that can mean they’re not going to get what they want because they’re not ready,” he said.

Getting the transition work done a handful of years from the exit can be key, Olsen said. “We prefer to be brought in as soon as possible.”

There are myriad reasons for getting as early start as possible and can include: “making sure you’re concentration on customers isn’t too hyper focused on just a few of them; wanting to avoid key people leaving; and not only how much money they’ll get, but the deal structure, such as legacy, and taking care of employees,” he said.

To sum up, Olsen said making the right connections can be crucial to gaining multiple offers, because “most business owners have this one shot to get it right.”