Tag: business sale

Selling your business externally to a 3rd party buyer/investor, more often than not, yields the highest value. It is a common strategy among business owners who are looking to diversify their personal financial risk and those who recognize that “going it alone” is no longer a long-term aspiration. The process of taking your business to [...]

Business owners often dread telling their various stakeholders of their intent to sell the business. Done poorly, this process may negatively impact the business or deal process. Taking time to craft a strategy for informing stakeholders will help mitigate many of the risks associated with the M&A process. Employees Defecting Ownership transitions bring about uncertainty [...]

It’s estimated that approximately half of all business sales fall apart during the due diligence phase[1]. This can be demoralizing for a seller that has spent countless resources on positioning the company for sale, polishing the marketing materials, and negotiating the Letter of Intent. The transaction process takes an abrupt turn when the parties enter [...]

Many private-equity transactions are structured as an equity purchase (e.g., stock) rather than as a direct asset purchase. Sellers often prefer an equity sale because they expect to receive preferential capital gains treatment on any resulting gain and typically require a gross-up for any ordinary income tax liability on a deemed asset sale. At the [...]