Category: Exit Planning

Buying & Selling a Company, Decision Making, Exit Planning

Walking Away After A Business Sale Can Be Difficult

Gregory Pearl

Many sellers want to sell their business and walk away. Be done with it. But most of the time there will be a transition period where the seller must stay on, after the sale. The length of time and nature of the seller’s ongoing engagement depends on a bunch of factors. This includes the nature of the business (e.g. service business), the size of the company, and the role the owner had in ongoing operations. From the buyer’s perspective, it is good to keep the seller on for a while to help with introductions to employees, vendors, customers, etc., and…

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Buying & Selling a Company, Exit Planning

Management Buyouts: Mostly Good But Can Be Tricky

Gregory Pearl

There are several exit strategies for a business owner. A buyout by the core management is one option that has many positives and should be considered. This can be a very satisfying exit option. The owner has put everything into building this business, assisted by a capable management team. Seeing that team carry on can be rewarding. The trusted managers will carry forward the owner’s vision. From the management team’s perspective, it is an opportunity to own their own business. But there are potential pitfalls. Major pitfalls. Perhaps most importantly. a company’s positive culture can be harmed should the owner…

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Buying & Selling a Company, Exit Planning

Some Tips To Sell Your Business

Gregory Pearl

In my last post, I mentioned that selling your business to an outside (3rd) party may be the best way to maximize the cash you will receive from your privately held business. That is true, but to get the most for your company, you the process needs to be managed well. While each selling process is unique and different, there are some commonalities. Here are some tips that will, hopefully, help the sale of your business go more smoothly. Understand your business value. Be realistic. One of the greatest impediments to companies actually selling is that the seller has unrealistic…

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Exit Planning

Exit Your Business: What Are The Options?

Gregory Pearl

There are many different ways for an owner to transfer the ownership of a business and make an exit. You will probably first think of a sale to an outside buyer as the most likely method. That is true, it is the first thing that comes to mind for most privately held business owners. But there are other methods that you should think about. Each has its advantages and disadvantages.  Each has unique characteristics that make sense for some situations and not others. Exits that are External To The Company Sale to an outside buyer outright. This is referred to…

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Buying & Selling a Company, Decision Making, Exit Planning

Times Are Good Now. But What Happens When They Are Not?

Gregory Pearl

The current economic climate is strong, with M&A activity being strong also. But what happens when the economic environment is difficult?  Challenging? Many business owners are thinking of selling in the next few years. What can they expect? Looking back at the activity in the last recession, which was a hum-dinger, gives us a clue. Despite the difficulty of the extremely challenging environment the last time around, business sales still happened. Activity was slower, deals were harder to close.  But still, it did happen. Whatever the economy, some baby boomers will want to retire. Some younger people will want to…

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Buying & Selling a Company, Exit Planning

How Does Your Company Look To A Buyer? Or Don’t Be That Company (Ouch)

Gregory Pearl

You want to sell your company. An outside buyer has approached you and is evaluating it. What are some of the things they will be looking at? The best way to handle this question is to look at it from the buyer’s perspective. In fact, it is always a good idea to look at things from the other person’s perspective, but that is a different topic. While every company is different, there are a few things that will really stick out to a buyer.  Know what those are. It is a good idea to consider three important areas a buyer…

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Buying & Selling a Company, Exit Planning

Why Do Companies Fail to Sell at the Last Minute?

Gregory Pearl

When deals fail to close (companies fail to sell), everyone is disappointed.  This includes everyone involved in the transaction:- the seller, the buyer, the intermediaries. Everyone. The issues causing the closing process to stop may be fairly minor or impossible to resolve. If the problem is somewhat minor, it still may be possible to resolve the issue if handled well. There are hundreds of reasons why a business sale may not reach a successful closing. It may begin with the Letter of Intent which formalizes verbal understandings into a written document. A bunch of items in the LOI can cause…

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