In the practical sense, when selling a business, goodwill is all the hard work and effort the seller has put into the business over the years. When acquiring a business, goodwill is the difference bet…
June 27, 2012
What Is Goodwill?
Confidentiality Agreements
“Confidentiality Agreement – A pact that forbids buyers, sellers, and their agents in a given business deal from disclosing information about the transaction to others.” The M&A Dictionary It is c…
June 27, 2012
The Anatomy of a Deal
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 an…
June 27, 2012
“Red Flags” in the Sunset
Unlike that poetic title of an old-time standard song, Red Sails in the Sunset, red flags are not a pretty sight. They can cause a deal to crater. Sellers have to learn to recognize situations indicat…
June 27, 2012
The Confidentiality Myth
When it comes time to sell the company, a seller’s prime concern is one of confidentiality. Owners are afraid that “if the word gets out” they will lose employees, customers and suppliers. Not to down…
June 27, 2012
Does the Deal Fit?
“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…
June 27, 2012
Selling Your Company — Some Key Points
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 buye…
June 27, 2012
A Selling Memorandum
A sellers memorandum includes all those points one would normally expect to see in any business plan, to wit: an executive summary, a business description, financial requirements, target market niche,…
June 27, 2012
Common Seller Questions
How long does it take to sell my business? It generally takes, on average, between five to eight months to sell most businesses. Keep in mind that an average is just that. Some businesses will take lo…
June 27, 2012
You Can Help!
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…
June 27, 2012
Are You Ready to Exit?
If you’ve gone this far, then selling your business has aroused enough curiosity that you are taking the first step. You don’t have to make a commitment at this point; you are just getting informed ab…
June 27, 2012
10 Tips for a Successful Sale
1.Sellers should find out the loan value of the fixtures, equipment and machinery prior to a sale. Many buyers will count on using it for loan or collateral purposes. No one wants to find out at the l…
June 27, 2012