Every business is a complicated machine of moving parts. From key employees to critical machinery, a business is more than the sum of its parts. A vital part of the assets of any company aren’t tangible: they aren’t people or place or items. The biggest part of these intangible assets is intellectual property: things that your company owns that exist only on paper, but are a critical part of any business. Properly protecting and transferring intellectual property can make or break a business....

Once a business owner has determined that they are ready to sell their business, many will wonder whether or not the timing is right for receiving an optimal price. Certain factors such as the state of the business, market conditions, bank lending and buyer intentions may determine the appropriate time to sell. The following guide outlines some indicators that may be useful in assisting buyers with choosing the correct time when to sell your business....

One of the first pieces of information that a business buyer will want to obtain from a seller is the answer to the inevitable question of why a business is for sale. Due to the fact that most business owners do not choose to sell when their company is booming and they are at the height of their success, buyers need to understand the risks involved that are incentivizing the owner to sell....

Within the M&A industry, the private equity sector contributes to a large amount of the financing for mergers and acquisitions. Private equity is made up of funds of investors, commonly referred to as limited partners, who lend money in order to obtain a return on their invested capital. Limited partners are typically wealthy business-minded individuals who invest large sums of money for extended periods of time in a Private Equity Group (PEG). The purpose of a PEG is to seek out companie...

Oftentimes, when people explore the idea of selling their business, they find themselves overwhelmed by foreign terminology and are unsure of where to begin. While many people have heard the term “business broker” used to describe someone that buys and sells businesses, this does not cover the full scope of the market. In fact, depending on the type of company being bought or sold, a business broker might not be the appropriate person to address at all. The mergers and acquisitions industry i...

“Dry powder” has proved to be a hot topic within both the M&A and private equity industries in recent months. “Dry powder” refers to the unused capital resting in the hands of private equity firms that has yet to be invested. While private equity firms are currently sitting on an accumulation of over one trillion dollars’ worth of capital that is available for investing, they have held back due to a lack of viable prospects. Learn how to use dry powder in private equity to sell your business...

The best way to ensure that your business merger will continue to be successful after the deal has closed is to facilitate an effective integration of cultures and means. This calculated merging of dual companies is the only way in which one can create a strong and upwardly mobile business. If the integration is not undertaken correctly, however, it could mean potential disaster for the merged company. The following points take a deeper look into the mechanics of an effective post-merger integra...

There are a number of options for financing an acquisition. Many M&A deals will utilize an earn-out to cover a portion of the cost of the business, since it acts as an opportunity for the seller to close the gap between perceived value and actual paid value. If the business performs well for the buyer after the close, then the seller has the opportunity to earn more, contingent on certain provisions being met within the given period.  Many sellers will opt for earn-out financing when the buy...

Buying or selling a business is a complicated endeavor that many people prefer not to venture upon without a professional guide. Buyers and sellers who utilize an M&A intermediary are able to maximize the value of their deal and complete it successfully. An M&A advisor oversees the entire course of buying or selling a business and acts as a financial advisor through each step of the process. The intermediary will ensure that those new to buying or selling a business are not taken advanta...

For anyone who is interested in becoming involved with an M&A transaction—whether as the buyer or the seller—it is important to assemble a team of advisors that will assist in the process. These individuals will be able to help conduct the more technical aspects of the M&A deal with their specialized knowledge. The advisory team should consist of an M&A intermediary, an accountant, and a lawyer. These advisors can provide a balance of knowledge from a business brokerage standpoint, a...