Monthly Archives: July 2015

Understanding Letters of Intent in the M&A Process

Selling your business? Eventually during the M&A process, the moment of truth will come and your advisor will ask the potential buyers to provide formal letters of intent (“LOIs”). While letters of intent can take many forms, it is important to understand what they are and what they aren’t. Most importantly, LOIs are generally not binding on the buyer. Typically, the only binding part of the LOI is that you will be agreeing to a period of time where the buyer has the exclusive right Read More [...]

Tax and Estate Preparation Before a Sale

As part of your exit plan, it is critical to prepare for an eventual liquidity event from a tax and estate planning perspective. Consider the following planning measures to help you secure the best and most efficient transaction: Company Tax Planning: Analyzing and implementing
appropriate organizational and structural changes can
radically affect the ultimate value of a sale if they are
put into place many years before a transaction takes
place. For example, most middle market sellers Read More [...]

Crossing the Finish Line of an M&A Deal

Not too long ago, deal closings involved large conference rooms in lawyers’ offices, reams of paper, and lots of angst as people confirmed the receipt of wire transfers. In today’s world, a closing usually occurs electronically, with documents being signed and passed by e-mail, with a final conference call with all parties involved (including lenders, equity providers, etc.), where the people with the money give their consent to release funds, everyone thanks each other, and then wire transfers Read More [...]

Selling Your Business is a Numbers Game

To maximize the value of your company when you’re ready to sell, you should create a market for it where there are a number of buyers competing against each other for your business.  Now, it’s important to realize that you’ll be kissing a lot of frogs along the way.  There is no easy way to find the “right” buyer in this marketplace. You’ll need to talk to a number of them, listen to them and explore their needs and proposals. Ultimately, you’ll find yourself weeding out the ones Read More [...]