Category Archives: The Sale Process

Winners Remorse

Buyers Remorse: Does the M&A Process Lead Buyers to Overpay?

Buyer’s remorse, also called winner’s remorse or winner’s curse is the realization that you have won an auction by paying more than anyone else was willing to pay.  Does winner’s remorse mean you have overpaid?  Not necessarily. When managing a company sale, there comes a point when interested parties are requested to provide non-binding expressions of…

working capital adjustment

Working Capital Adjustments in an Acquisition

Working capital adjustments are required when a going concern business is acquired by way of a share purchase.  This is the case for two main reasons: (i), because working capital changes every day as revenues are generated and supplier and payroll payments are made, and (ii), because working capital is easily manipulated in a material…

earn-out

Form of Payment: Should You Accept an Earn-Out?

Consideration (i.e. amount to be paid) in private company acquisitions will usually include a sizable portion in cash (50 to 100%) and will often include an unsecured note, and/or an earn-out.  This is because: (i) the buyer does not have the amount of cash required for an all cash transaction (particularly in the case of…

How long does it take to sell a company

Business Sale Time-frame (with milestone chart)

Selling a business requires careful planning — everything from cleaning up the books and tax records to updating old operating systems—even ramping up marketing to accelerate sales to be able to command a higher asking price. All too often, an unexpected factor—an aging or ill owner, lack of interest in succession from adult children, or…

Selling a Small Business

Time-frame and Steps in Selling a Business

When is the right time, and what are the steps in selling your business? The ideal time to sell your business is when there are positive trends in revenue and earnings with the expectation of more to come.  Growth is very influential in attaining a strong valuation multiple and, while valuation is technically determined by future…

Situations to Avoid When Selling Your Business

12 Mistakes to Avoid When Selling Your Business

12 Mistakes to Avoid When Selling Your Private Business The following illustrates 12 scenarios to avoid when selling your business and discusses the main impediments to securing exceptional value for small private companies. A Must Sell Situation Selling on strength should be your goal but be mindful that the selling window can close anytime.  If…