This edition of the M&A Digest begins with a piece that explains the traits an “optimal” business buyer should have. Then, we exploreplanning by examining what to do if partners what different things after selling the company, how procrastination can affect your professional and personal life, and how a deal with family members could play out. As usual, click on the headline to read the full piece.
“Folks in the M&A industry talk quite a bit about finding the optimal, premium, or “best” buyer for your business. However … we never define what that type of buyer looks like. If you are like most business owners and will be looking to close a transaction without professional representation, it is important for you to come up with a rough idea in advance so you can ensure that the deal you eventually seal will be with the most optimal buyer possible according to your needs.
So what does this buyer look like?”
If two business partners want different things out of an exit plan, a deal that achieves both owners’ goals can emerge.
“Two beasts stalk entrepreneurs: Boredom and burnout. We meet company owners who suffer from both of these nearly every week. Generally entrepreneurs see them as a negative. And certainly from a personal standpoint, they are. But to a buyer they both mean different things.”
If you own a company and procrastinate with exit planning, the toll it can take on your family, company, and personal and financial legacy can be extreme.
What are you going to do with the business when you retire? If your plan is to sell to family members, learn how a typical family transition can go.
You don’t need to hire an M&A advisory firm to sell your business, but there are a few compelling reasons why business owners do enlist professional help.
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