In our expereince, there are both " Deal Makers and Deal Breakers" that can make a deal happen or can cause a deal to fail.
Deal Makers
Issues that will help a deal go more smoothly are as follows:
1. Have well prepared company information.
2. Decide that terms wil make a difference.
3. Make sure to deal with a qualified buyer.
4. Consider structure...stock vs. asset's and "C"
vs. "S" Corporations
5. Evaluate closing contingencies relating to
both known and the unknown.
6. Realize the importance of representations.
7. Understand what indemnification means.
8. Decide on your employment.
9. Acknowledge the need for a covenanat not
to compete.
10. Think transition.
Deal Breakers
On the other hand there are behaviors that may lead to a failed deal. Don't
1. Prepare unrealistic projections..called
hockey sticks !
2. Think buyers are naive.
3. Believe there is any easy deal.
4. Forget that buyers will attempt to mitigate risk.
5. Mix up "owners cash flow" between
market compensation and financial returns.
Contact us for additional information !
