This week’s digest features a checklist to help you get through the due diligence process, formula for valuation, and mistakes to avoid when selling your business. As usual, click on the headline to read the full article.
“Most clients that I meet with post-sale tell me that due diligence was probably the most challenging part of the entire sales process. For those of you unfamiliar with the term, M&A due diligence is the process whereby a seller lifts the veil and the buyer is allowed to peer into the vital inner workings of your business. If you are not prepared for this, chances are good that the buyer will find something that you have not disclosed – good or bad – that may slow the deal down if not kill it.”
What’s the best valuation formula to determine how much your business is worth?
“Most of our M&A professionals have been working in the lower middle-market (loosely defined as deals valued below $100 million) for decades. During this time, we have all heard countless first-hand horror stories from business owners who have sold their companies without using professional representation. Although each story is unique, over time we have seen that there are several common mistakes that most business owners make when approaching the market.”
© 2013 Generational Equity, LLC All Rights Reserved
Motivated to learn more about exit planning? Download a complimentary whitepaper from M&A advisory firm Generational Equity called Exit Planning Basics: What You Need To Know Before You Start.