Operational readiness determines your sale price, deal structure, and transition requirements. Learn the five categories buyers evaluate — processes, people, technology, controls, and compliance — and the 90-day sprint to prepare.
Archive for the
‘Business’ Category
Mezzanine financing bridges the gap between bank loans and equity investment, offering $1M-$15M in growth capital while preserving 90-98% of ownership. Learn how it works, when it makes sense, key terms, and who provides it.
A term sheet defines the economics and control of your capital raise. Learn how to read valuation, liquidation preferences, anti-dilution, board composition, and protective provisions — and what to negotiate before you sign.
A Nashville business valuation typically ranges from $500 for a preliminary snapshot to $5,000+ for a formal report. Here’s how valuation works for businesses with $3M-$50M in revenue and what drives your number.
Technology due diligence is now standard in every M&A transaction. Learn what buyers evaluate — infrastructure, cybersecurity, IP, data assets, licensing, and IT team — and how technology findings affect your business valuation.
Search funds are one of the fastest-growing buyer categories in the $1M-$10M EBITDA range. Learn how search fund acquisitions work, what searchers look for, deal structures, and whether selling to a search fund entrepreneur is right for your business.
Service businesses sell for 4x to 12x EBITDA depending on revenue quality, owner dependency, client concentration, and scalability. Learn how buyers value service businesses differently and what drives premium multiples.
Escrow holdbacks of 5-15% of purchase price are standard in M&A transactions. Learn how escrow accounts, indemnification caps, baskets, survival periods, and RWI insurance work — and how to negotiate terms that protect your proceeds.
Multiple offers create leverage that typically generates 15-30% higher valuations. Learn how to manage a competitive sale process, evaluate offers beyond price, handle exclusivity, and avoid the mistakes that cost sellers money.
A minority recapitalization lets you sell 20-49% of your business while keeping control. Learn how the two bites of the apple strategy works, who the buyers are, what you give up, and whether a partial sale is right for your situation.
Every buyer starts with your financials. Learn what they actually evaluate — revenue quality, margin analysis, EBITDA add-backs, balance sheet health, cash flow reconciliation — and how to prepare before going to market.
A management buyout lets your existing team purchase the business you built. Learn how MBOs work, financing structures, the pricing trade-off vs. competitive sales, common pitfalls, and how to structure a deal that works for both sides.
An ESOP lets you sell your business to employees through a tax-advantaged trust. Learn how ESOPs work, the significant tax benefits for S-corps and C-corps, setup costs, valuation requirements, and how to decide if an ESOP is right for your exit.
Roll-ups are the dominant PE value creation strategy in the lower middle market. Learn how they work, what makes a business an attractive platform or add-on, which industries are most active, and what sellers and buyers need to know.
Your data room is your first impression with buyers. Learn what documents to include, how to organize them, when to build it, which VDR platforms to use, and the common mistakes that slow deals and erode seller leverage.