The following might be a subtitle for this true account of how one deal was put together: “In spite of everything, you need only one buyer – the right one!” (Although the details are factual, names and financial data are fictional.)
The company (let’s call it ElectroCo) has carved a niche in a billion dollar industry. It manufactures proprietary electronic products and...Read More
Unlike that poetic title of an old-time standard song, Red Sails in the Sunset, red flags are not a pretty sight. They can cause a deal to crater. Sellers have to learn to recognize situations indicating there might be a problem in their attempt to sell their business. Very, very seldom does a white knight in shining armor riding a white horse gallop up, write a large check and take over the...Read More
When it comes time to sell the company, a seller’s prime concern is one of confidentiality. Owners are afraid that “if the word gets out” they will lose employees, customers and suppliers. Not to downplay confidentiality, but these incidents seldom happen if the process is properly managed. There is always the chance that a “leak” will occur, but when handled...Read More
“The most successful integrations were directed by people who placed the common good of the combined organization and its customers before all else.”
From: The Mergers & Acquisitions Handbook.
By now, most business owners are familiar with the problems created by the merger of Daimler, the German automobile company, and Chrysler, the American car maker. Here is the classic...Read More
Settle all litigation and environmental issues before putting the company on the market.
Hire a good transaction lawyer, because the buyer will also.
If company owners are totally inflexible, the buyer may walk away from the transaction.
Be prepared to accept a lower price for lack of management depth, dependence on a small number of customers or clients, and lack of geographical...Read More