Sell-side Mergers and Acquisitions.
An exclusivity clause is an important part of M&A transactions. Also known as a ‘no shop’ provision, it prohibits the seller from sharing information or negotiating with other would-be buyers for a specified timeframe. Prior to this, the seller is negotiating with several buyers. The goal is to entertain multiple… Read More »Exclusivity Clause Protects Buyer Investment in M&A
In a recent conversation with a Business Owner seeking to sell a 10-year-old business, we discovered that there were many personal relationships intertwined with their business ones. The major issues: the Owner’s brother-in-law’s company provided the major raw material while a childhood friend provided additional goods. Additionally, other suppliers had… Read More »Are Your Vendors Personal Relationships?
When marketing your business, one of the first things buyers will see is an executive summary. As an initial introduction to your company, the summary has to catch a buyer’s attention without giving away confidential details. It’s critically important that you have the right information stated in the correct way.… Read More »Writing the Perfect Teaser
We just had a management meeting with one of our clients yesterday. It did not go well. In the M&A world, a management meeting is like a first date. It’s the first time the sellers and would-be buyers meet face-to-face. It’s an opportunity to showcase your business, get to know… Read More »Forget The “I” In Team When Selling Your Business
A successful sale requires a good deal of pre-planning. We recommend owners start preparing at least three years in advance. Depending on your situation, we might suggest developing key staff or management, documenting operations, or controlling working capital. The national average for a home sale is 68 days while the… Read More »A Process, Not An Event
You don’t want to hear this. You might even be a little offended. But when it comes time to sell your business, you are the least valuable part of the equation. Unless you’re sticking around with an ownership stake or long-term employment contract, your experience means very little to a… Read More »You Are The Least Valuable Part Of Your Business
We take great pains to make sure our clients are mentally and emotionally prepared to sell. But personal readiness isn’t the only concern. Economic factors can significantly impact the sale. Your business value can be affected by the political climate, industry consolidation, trade wars, employment trends, and other economic measures.… Read More »I’ll Sell When I’m Ready
As you start the sale process, you may be holding more offsite meetings and fielding confidential phone calls. Even a subtle shift inactivity can cause savvy employees to wonder what’s up. Be prepared to answer questions about who these advisors are that are touring your business and why you’re requesting… Read More »When Someone Asks, “Are You Selling?”
When selling a business, an earnout is basically a commitment by the buyer to pay the seller a certain amount of money tied to future performance after a sale. While earnouts are a great way to boost the value of your company, they can be a dicey proposition for a… Read More »Earnouts Don’t Deserve A Bad Reputation
When selling your business, you need to decide what to do with your business real estate. Do you want to sell it or hold on to it? And what should happen if you don’t own your real estate? Those are important questions to answer as you plan to sell. You… Read More »Sell Or Hold? What To Do With Real Estate When Selling A Business