Structure – The Final Variable in Your Selling Equation By Brian Goodhart The final component of Your Selling Equation is Structure. The very word gives me the chills as structure is such a big topic and covers so many potential areas. I often hesitate to treat it as a singular component because it’s just not. …
Operations – The Fourth Variable in your Selling Equation By Brian Goodhart The essence of the Operational component of your selling equation is the fundamental question of whether the owner’s departure upon sale would cause a material disruption in the performance of the business. In a perfect world, a business owner would be able to …
Timing – The Third Variable in Your Selling Equation By Brian Goodhart Timing, as they say, is everything. Well not exactly everything, but it is very important. And it is yet another deeply personal factor that comes into play whenever deals are contemplated. In my last post I discussed Involvement and how each business owner …
It became clear discussions could go no further and so the Fiat Chrysler-Renault merger collapsed just barely a week and half after it was first announced. A peak behind the scenes reveal a number of lessons to learn from this failed merger. Pay attention to cross-border issues Many reports note that Fiat failed to win …
How many of you would say your most recent hire agreed to join your organization purely for financial reasons? Most employees take other factors into consideration including benefits, location, job description, your company’s mission, and “fit” with your company’s culture. The financial side is certainly important, but leveraging these other factors is critical, especially when …
Sarah’s company had been speaking to the prospect for months and was almost ready to sign a letter of intent, when all of a sudden, the seller changed his mind and walked away from the deal. Sarah and her team were stunned and left asking, “What happened?” Unfortunately, deals do fall apart for a variety …
The short answer to this question is no. Some owners may sell to the highest bidder, but this is not always the case. Differentiating by price alone is problematic for a number of reasons, the most obvious being that someone can always outbid you. In addition, when it comes to privately-held transactions, especially, we find …
Many are convinced that the buyer with the most money always wins the deal. Although many acquisitions by financial acquirers and strategic buyers are driven by the desire to grow revenue and the company’s bottom line, it is possible to win an acquisition without offering the most amount of money. A successful acquisition is about …
The Guideline Public Company (GPC) Method is one of the more popular valuation methodologies because people often hear about it in the news or in presentations. This method identifies prices for individual shares of publicly traded companies that are subject to the same industry dynamics as the subject company (the company you are trying to …
“Why should I let you buy my company?” Chances are an owner will ask you this question during the course of your acquisition and you must have a convincing answer. While the strategic fit and benefits of an acquisition may be abundantly clear to you, an owner may not share your perspective. As a leader, …
NY Times – DealB%k