For business owners looking to sell their company, there are more factors to consider than simply finding the right buyer at the right price. To accomplish a successful transaction, goals should be set to define what success is.
R&W insurance provides private equity firms, strategic and corporate buyers, risk managers, and other stakeholders with a risk mitigation solution for uncertainties in a merger or acquisition. The policy is available to either the buyer or seller and provides protection against financial loss, including defense costs for certain unintentional or unknown seller breaches.
For business owners looking to sell their company, there are more factors to consider than simply finding the right buyer at the right price. To accomplish a successful transaction, goals should be set to define what success is.
In a previous article, we discussed Net Working Capital (NWC) and its significant role in transactions. To recap, NWC is defined as a company’s current assets minus its current liabilities. This post will address one component of NWC that is often misunderstood and mishandled in the sale of a company: deposits.
Net Working Capital (NWC) is one of the most important negotiations in a transaction, often having the greatest economic effect compared to other terms in a deal. NWC is also
one of the levers buyers can use to potentially lower the price they pay for an acquisition. Why then, does NWC so rarely get discussed until the transaction is almost complete? The answer to that question, and the topic of NWC in general, can be complicated. However, a
good advisor should be able to simplify the explanation and act as an advocate to ensure the seller receives fair treatment. In this article, we will take a look at what NWC is, how it
is used, and the benefits an investment banker can provide to sellers by negotiating its value.
IOIs and LOIs are crucial components in running a complete M&A process, but there are some key differences.
For business owners currently engaged in or contemplating an M&A process, the importance of the purchase agreement is critical. Beyond the legal intricacies, this document serves as a basis of trust, transparency, and collaboration between buyers and sellers. To navigate this pivotal phase of the M&A process, prudent business owners are well-advised to engage the services of experienced investment bankers and M&A attorneys.
Whether a company is undergoing its first financial review or has a history of accounting oversight, the decision to engage in a Quality of Earnings (QofE) analysis is crucial, especially for those contemplating a sale. A QofE analysis focuses on the accuracy and sustainability of earnings, helps sellers better understand how buyers are going to evaluate their business, and provides a deeper understanding of the true earning potential of a business.
Business succession planning needs to be an integral part of any private or family-owned business. It is an important and evolving process that requires thoughtfulness and ongoing attention from the owner. This is not a task to be put off until later. To be done successfully, it needs to be a consistent part of a company’s business strategy and operations. Doing so can increase the confidence of buyers and potentially maximize the amount they are willing to pay for the company.
The process of exiting a business is far more than just a financial transaction; it is a complex balance of personal goals, strategic decision-making, tax and legal complexities and wealth preservation. In this whitepaper, we dive into the various aspects of exit planning – highlighting critical considerations and some strategies that may be used to ensure a successful transition.
