Selling a Business Is Not a DIY Project

If you’re serious about selling your business – especially to a larger company – going it alone is a bad idea for a
number of reasons.

I recently met a woman (I’ll call her Pam) who owns a successful line of clothing that has captured a loyal following of women who buy her products through a group of retail clothing stores across the U.S.

In addition to having her own clothing line, Pam produces a private label brand for a… Continue reading

The Letter of Intent – A Primer for Business Owners

At this stage you have likely held anywhere from one to three (or more) meetings with a prospective buyer. If you are running a structured sale process soliciting multiple buyers, then you have spoken with several suitors and narrowed the prospects to 1-4 prospective buyers for these more in-depth discussions. Ideally the prospective buyer(s) and you should both be at a go/no-go decision point on continuing the discussion. If the buyer elects to continue, then expect to receive a Letter of Intent (LOI) outlining the buyer’s proposed deal structure and terms. Receipt of an LOI from a potential buyer is a clear signal that they are serious in their intentions; however it is not a “given” that they are fully committed yet. In fact, some buyers are known for not closing a high percentage of issued LOIs since their strategy is to lock-up as many potential deals as possible and close only the top 3-4 of the lot. Continue reading

3 Red Flags That You Chose The Wrong M&A Advisor

Posted by Peter Lehrman

We’ve written before about the importance of choosing the right M&A firm and investment banker when preparing to sell
your business or evaluate an exit strategy. Business owners who skimp in this area are being penny wise and pound foolish.

Here are three red flags that business owners and CEOs should look out for when interviewing different investment banks and M&A Advisors who are pitching to represent them. If the financial statements of your company aren’t… Continue reading

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