In this blog series I’m describing ten common mistakes that we’ve seen in the M&A deal process. Every entrepreneur or executive who plans to buy or sell a company should avoid these common mistakes to increase their chances for success. 3. Listening to naysayers Buying or selling a...
A potential solution for negotiation stalemates Sometimes merger and acquisition negotiations reach an impasse — even when both parties are committed to making the deal succeed. When buyers and sellers are at loggerheads over pricing, all of the transaction’s benefits can fall to the wayside. There may,...
There are several key factors in planning to buy a business, most of which are necessary to achieve a successful closing. Just as a seller has to deal with quite a few factors, the acquirer must also. Some of the more important ones for completing strategic...
A recent article in M&A Today offered some observations concerning current and future M&A trends. “The business world is constantly changing. For the first half of the 20th century, vertical integration was the objective in which, oil companies, for example, owned the entire process from drilling...
The representations and warranties on the Purchase and Sale agreement take effect the date of signing. According to the book, The Art of M&A – A Merger Acquisition Buyout Guide by Stanley Foster Reed, the conditions in the representations and warranties are: “…intended to disclose all...
Successful growing companies often grow through a combination of organic growth and strategic acquisitions. A strategic acquisition is defined as a transaction in which one company buys another company that complements its business. If they achieve some level of synergy, the result is a combination...
In many cases, the buyer and seller reach a tentative agreement on the sale of a business, only to have it fall apart. There are reasons this happens, and, once understood, many of the worst deal-smashers can be avoided. Understanding is the key word. Both...
The following is some basic information for anyone planning to purchase a business. Is may also be of interest to anyone thinking of selling their business. The more information and knowledge both sides have about buying and selling a business, the easier the process will...
It may be advisable to have an attorney review the legal documents. It is important, however, that the attorney you hire is familiar with the business buying process and has the time available to handle the paperwork on a timely basis. If the attorney does...
Certainly, you need adequate capital to buy the business and to make the improvements you want, along with maintaining some reserves in case things start off slowly. You need to be willing to work hard and, in many cases, to put in long hours. Unfortunately,...