As business owners are working to process the impact of COVID-19, we’re looking at how it will affect M&A. In the short term, some companies will slow the pace of acquisitions. That’s natural in uncertain times.
6 Common Mistakes a Business Owner Makes When Selling Their Business - Scott Bushkie, State of M&A
Ideally, you’ll start preparing for sale early in your business lifecycle. The more you know about what buyers want, and what you can expect from the market, the more options you’ll have to exit your business.
Business owners looking to sell their business, or attract an investment partner, may want to add family offices to their outreach strategy. These private family firms, established by high net worth families to manage their wealth, can offer unique advantages.
Marketers will sometimes talk about the four p’s (product, placement, price, promotion) of selling. Known as the “marketing mix,” the emphasis a company puts in each area can have a direct impact on sales and profits.
It’s the New Year, that time when many business owners make a fresh resolve to develop their business. For some, that means updating equipment and driving sales. But others will focus on something more personal and possibly more pivotal: developing their leaders.
“Immense satisfaction tinged with loss.” That’s how one business owner described selling his business.
A no shop provision is an important part of M&A transactions. Also known as an exclusivity clause, a no shop clause prohibits the seller from sharing information or negotiating with other would-be buyers for a specified timeframe.
Earnouts are used to bridge a valuation gap between a buyer and a seller. It’s a compromise, of sorts, to break a purchase-price deadlock when the seller wants more than the buyer is willing (or able) to pay.
Often, clients sort of just find themselves in the M&A process and have trouble making sense of the overwhelming landscape of buying and selling a business. Today, we are going to attempt to clear up a set of commonly used acronyms you’ll see when valuing a business for sale. Those are EBITDA and SDE and Multiples.