News & Resources
Every entrepreneur aspires to take an idea or skillset and transform it into a highly profitable, successful business. Sometimes using external capital is necessary to achieve this goal. Although bootstrapping (i.e., using your own funds) to finance the business can work for some, many require external capital to unleash the business’ true potential.
Selling a business is a critical decision, and it's essential to explore various options to maximize value and achieve your desired outcomes. There are three external options for selling your business, reacting to an unsolicited offer, creating an auction process, or reaching out to a limited buyer list (usually strategics). Each option brings with it their pros and cons.
It is important to consider the specific dynamics of each negotiation and the unique characteristics of your business when deciding whether to provide a purchase price or wait for the buyer's offer. Assess your goals, market conditions, and seek expert advice to make an informed decision that aligns with your objectives.
From a mergers and acquisitions perspective, net working capital is important, as it can either increase or decrease the purchase price of a transaction at close or within a reasonable period post close.
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With a basic Google search, it would not be hard to learn about acquisitions that have failed to generate the return on investment (ROI) that was expected post-acquisition.
The Confidential Information Memorandum (CIM), also known as an Offering Memorandum, is a confidential document used in the mergers and acquisitions (M&A) process to provide detailed information about a company to potential buyers or investors.
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