Time your negotiations by understanding owner psychology. Everyone wants to talk about price in mergers and acquisitions. It’s often the number one focus of buyers and sellers…but for opposite reasons. Both are likely to say they are looking for a “good deal,” but this can have a completely different meaning depending on the perspective. Buyers …
Tag: seller’s equation
High or Low? What Price Should You Put in the LOI?
I’m frequently asked about the “right” price to put in the letter of intent. As you will know, the LOI is an important milestone in the M&A process, because it establishes a “gentleman’s agreement” before the formal deal is settled. You have yet to compete due diligence at this stage, and figuring out the right …
How to Manage Unrealistic Expectations of Value
How often do sellers have unrealistic expectations of their company’s value? What’s the best way for a buyer to approach them early in the process and address their concerns? Todd Nelson, Capstone Valuation Advisor, answers: This is a common issue where sellers hold high value expectations for their businesses. While price is not the only …
How to Get Acquired: Top 10 Tips for Selling Your Business
M&A can be a powerful tool for transforming your business, but it’s important to find the right partner who is aligned with your strategy in order to accomplish your goals. For sellers, oftentimes acquisition means saying goodbye to a business you’ve built from the ground up. You don’t want to sell your life’s work to …
Facebook Says No Waze
Yesterday, we learned that Facebook’s bid for Israeli startup Waze has ended. According to reports, negotiations broke down over disagreements on moving the Waze team from Israel to Facebook’s headquarters in Menlo Park, California. Facebook was rumored to be in talks to buy Waze for $1 billion. This is a great example of why it’s …
