The business sale process has a number of distinct stages and typically takes 6 to 10 months to complete.
There are strategic and financial buyers. The best buyer is the one that benefits the most from the purchase.
A business's value is determined by market comparables as well as business specific analysis.
How does an M&A advisor add value to the sale process? There are many non-price issues that arise during an M&A process. An M&A advisor can keep the process running smoothly and ensure the post sale relationships are started on the right foot. The following are three areas where an advisor improves the chances of…
Business brokers will say various things to convince sellers they are the best possible agent for you to sell your business. Examples include: buyers are currently paying high prices in your sector, or I have the prefect buyer for your business How do you separate fact from fiction and secondly, how important are buyer relationships? …
How do you Realize Full Value for your Business? Like any good question, there is more than one answer to this question. In fact, there are two. The first answer concerns the business itself, while the second answer concerns the sale process. A higher EBITDA multiple is paid for lower risk, but, the biggest driver in…
Selling a business is a complex and life changing transaction. The following is a high-level checklist to help you determine and communicate your objectives to a buyer. Ownership Do you want to sell 100% or would you be willing to retain a minority stake? Do you feel you could work with a partner? If retaining…
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…
When an M&A Advisor is presenting his or her credentials to a prospective client, the part that typically has the most impact is illustrating that, either he or she already has a relationship with the perfect buyer, or that they can readily access the perfect buyer (i.e. you have done deals in the space which…
What is the difference between a business broker and an M&A Advisor? The main difference is in the size of the transactions they work on. Business brokers deal with smaller businesses, retailers, restaurants, franchisees while the term M&A Advisor is generally reserved for investment banking firms that work on more complex and larger transactions. So what…
A Management Buyout, or MBO, is a form of acquisition where a company’s existing managers acquire a large part or all of the company from either the parent company or from the private owners. A Management Buyout is one alternative for an owner-entrepreneur to exit his or her business. The management team buying the business…
