An M&A deal is a complex, high stakes process that has many factors which can affect its success or failure. In this blog series I will describe ten common mistakes that we’ve seen. Every entrepreneur or executive who decides to sell a business or grow...
The ultimate test of your business can be found in a simple question: Would someone want to buy your company? Whether you want to sell next year or a decade from now, you must be building an asset someone would buy – otherwise, you have a...
Know what your business is worth. Don’t even think about selling until you know the range of likely selling prices. Are you prepared to lower your price if necessary? Prepare now. It’s often said, “The time to prepare your business to sell is the day you...
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 can be many strategic reasons why a bigger company might want to buy yours. Here are a few to consider: 1. To control their supply chain In 2011, Starbucks announced it had acquired Evolution Fresh, one of their providers of juice drinks, for $30 million. Now...
Did you see the news that Facebook recently acquired Internet messaging service WhatsApp for $19 billion? It represents the largest acquisition of an Internet company in history. WhatsApp is a pearl for sure. The messaging service allows users to avoid text-messaging charges by moving texts across...
1. Get paid quickly – A sale isn’t real until you have the money. We see a lot of companies that are profitable but cash poor because their profits are tied up in working capital. It’s great if your business model allows you to be...
Know your company’s value proposition – What benefit does your product or service provide to your customer? If it’s not saving them money, helping them make money, or relieving some pain, it’s just a commodity. Understand your cost structure thoroughly – You need to know your...
A professional valuation of your business is important, but the resulting value is usually not the purchase price. The business will be bought for whatever the seller will take for it. Lenders tend to look at fixed assets; buyers tend to concentrate on cash flow. Buying businesses goes...
With the Sochi Olympic Games taking place this month, it is interesting to reflect back on some of the big events of the 2010 Olympic Games in Vancouver. In the Men’s Downhill race at Whistler, for example, the winning time of 1:54:31 was posted by Didier...