The Right Seller Mindset Near the End of the Deal

<p>When you embark upon a merger, what is the first and last things the seller should be thinking about? In this episode, we cover selling your firm and what it takes to get a deal done.</p><p>Our advice to sellers covered in this episode: </p><ul><li>You need to fully understand what you are getting into when selling, it's a hard, unnatural act.</li><li>Going to market</li><li>Do you know what you want to do next? What happens after the deal is done?</li><li>Make sure to have clarity</li><li>Bumps in the road - are you ready?</li><li>Valuation expectations</li><li>Accounting challenges</li><li>ARE YOU READY? What is your mindset?</li></ul><p>The effort that goes into a process to sell your business is substantial and will come with a cost of distraction, advisors and professional fees. Backing out over minor adjustments in valuation, timing or structure will not render an ROI for your efforts. </p><p>Ways to keep deals on track covered in this episode:</p><ul><li>Set good expectations</li><li>Be truly transparent in your disclosures</li><li>Commit to the combined entity and vision of the future</li><li>Be fair in your assessment of chargebacks (boats in Miami are not legitimate business expenses)</li><li>Be prepared to absorb some personal liability</li><li>Structure the deal in such a way that it is always a win/win.</li><li>Reps and warranties can protect both parties, so be prepared to accept holdbacks on payments or equity to allow additional time post-close to resolve allocation issues.</li><li>Set good expectations with yourself</li></ul><p><br />How an advisor can help:</p><ul><li>We help clients see the whole picture, including the likely pushback, carve outs and challenges we see during a process.</li><li>Advisor can be the “bad guy”</li><li>Being prepared ahead of a process makes all the difference.</li><li>Financial reporting (audited)</li><li>Tax filings</li><li>Debt / balance sheet</li><li>Keep the cap table clean (clean up old sins prior to the process)</li><li>IP documentation</li><li>Limited liti