Business owners often come to us concerned about employee jobs and retention issues after a sale. They worry that selling their business will lead to job losses if certain positions become redundant. However, buyers today are often just as focused on retention issues. Your experienced talent can be a key… Read More »Why Employees Matter to Sellers AND Buyers?
Datasite’s recent research reveals that the most common 2 issues uncovered in due diligence that causes buyers to withdraw from a deal in due diligence are cybersecurity and data concerns (36%) and financial weaknesses (22%). When asked how often a deal does not progress due to an issue uncovered in… Read More »Top 2 Deal Killers in Due Diligence
If we’ve said it once, we’ve said it a thousand times: “Time kills all deals.” Essentially the longer it takes an M&A transaction to reach the closing table, the more likely that deal is to fizzle and die a painful death. A lot of it just comes down to human… Read More »You’re Killing Me ….!
M&A buyers are increasingly looking at environmental, social, government (ESG) factors as an element in their decision-making. In new research from Datasite, 84% of dealmakers ranked ESG as “important/very important” to consideration; with 75% reporting deals that didn’t move forward due to ESG concerns.ESG issues cover a wide range of… Read More »ESG Rising on Due Diligence Hot List
Virtual Data Rooms (VDRs) are now a fairly well-established practice in business transactions. Also known as a Deal Room, a VDR is a secure online portal used to share confidential files. Historically, a physical data room would be set up at the seller’s business office, or their advisor’s office, so… Read More »Virtual Data Rooms: Don’t Use an Advisor Without One
In the lower middle market, most sellers must finance a portion of the sale of their business. Expect to provide anywhere from 5% to 15% seller financing. This helps close a funding gap and demonstrates that you believe in the business as a going operation. Sellers who are confident in… Read More »Most Sellers Must Finance
Begin the sale process while your business is on an upward trend. Buyers pay a premium for businesses with well-defined opportunities and a strong growth story. Too many business owners get tired or complacent and psychologically retire early, before the sale. In fact, after retirement, burnout is the number two… Read More »Finish Strong
When it’s time to sell your business, you may have multiple buyers to choose from. You could receive offers from strategic, financial, and/or individual buyers. As you start thinking about selling your business, think about what’s most important to you in a sale. Different buyer groups typically operate by different… Read More »Pros & Cons of a Strategic Buyer
Ready to sell? Talk to your spouse and advisors. Beyond that, keep it a secret. Confidentiality is extremely important in almost any deal. When people begin to think your business is for sale, it creates dangerous uncertainty…and this is even more critical as we are living during a time of… Read More »Put on Your Poker Face
It’s estimated that in the Lower Middle Market, only 20% to 30% of companies who want to sell will successfully transition to new owners. The number one reason for unsuccessful transitions is due to business owners who try to handle a sale themselves or use an advisor with limited experience and buyer reach. For most business owners, at least 80% of… Read More »Do-It-Yourselfers Lose 30%