What is Amortization? You’re Probably Already Using It

All things end: some for the better, some for the worse. Planning and tracking that decay in accounting is known as Amortization: the decreasing of an amount over a length of time. The amount that is decreasing could be owned money–such as in the form of debt–or the deprecation of an asset of a company without a fixed price–an intangible asset. There are examples of amortization in the buyouts of companies for many times their worth, to your very own personal debts. [Read more...]

Understanding the M&A Engagement Letter

The M&A process requires the creation of a number of important documents, including the Letter of Intent, purchase agreement, and non-disclosure agreement. However, the primary agreement document is the engagement letter, which is an agreement between the M&A intermediary and their client (most often the seller.) This document determines the fee structure for the advisor as well as their duties to their client. It is a superb opportunity for the intermediary and the seller to discuss objectives for selling the business and lay the groundwork for the process. [Read more...]

Why Your Competitor Might Make the Best Business Buyer

When considering the sale of one’s business, choosing a competitor as the buyer may be the last option to come to one’s mind. It might feel like selling out. Or perhaps it may be unclear what a competitor would have to gain from buying a similar business. However, sometimes one’s competitor is actually the best person to buy the business. [Read more...]

Running the Business During the Due Diligence Process

An M&A deal can be a lengthy ordeal, especially the due diligence portion of the process. During due diligence, the buyer examines all of the business’s financial documents in order to ensure that everything is as previously represented. Due diligence assists the buyer in determining whether or not the target is in fact one that they truly want to buy. [Read more...]

What is the Confidential Offering Memorandum (COM)?

The Confidential Offering Memorandum (COM) is a document used for selling a business. Typically drafted by an M&A intermediary, this document includes all pertinent information that a buyer may need to know when seeking more information about a business that is being offered for sale, and it acts as an introductory package of information for the business for sale. [Read more...]

What Should Small Business Owners Disclose to Prospective Buyers?

Presenting a small business to a prospective buyer is akin to going on a first date; first impressions are extremely important. [Read more...]

20 Questions to Ask a Business Broker Before Partnering with One – Part 4

A seller who partners with a business broker is a smart seller. [Read more...]

20 Questions to Ask a Business Broker Before Partnering with One – Part 3

Selling a business is no small feat, but it is a venture that is made much easier with the involvement of a business broker. [Read more...]

20 Questions to Ask a Business Broker Before Partnering with One – Part 2

A business owner who has decided to sell his or her company is always best served by partnering with an experienced business broker. [Read more...]

20 Questions to Ask a Business Broker Before Partnering with One – Part 1

Selling a business is an undertaking that business owners should not attempt without assistance. [Read more...]