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
“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
You, as the seller, are an integral part of the total marketing program. We would like to offer a few friendly recommendations that will help in the marketing efforts.
It might also be helpful if you took a good look at your business from the perspective of a buyer. Try to put yourself in the place of a prospective purchaser of the business. What would you do to make it more attractive or more...Read More
What is the required capital investment?
What is the annual net increase in sales?
What is in inventory?
What is the debt?
What is the prospect of the owner staying on?
What makes this company different/special/unique?
What further defines the product or service? Bid work? Repeat business?
What can be done to grow the business?
What can the buyer do to add value?
What is the profit picture in...Read More
