Far too many business owners think the deal is done when a price is agreed to, or even worse when they are introduced to someone whom they perceive to be a great acquirer. Often this is someone who treats them well and tells them how amazing their business is. This is obviously not the case, and there are numerous pitfalls along the way. You need to be clear about what the critical steps are toward closing. For example, a detailed Heads of Agreement (also called a Term Sheet

This may seem obvious. Your lawyers work for you, after all, and it is absolutely critical that you hear their advice, but you need to make your own decisions. The reality is, the only parties to the deal are you, (your co-shareholders if you have any) and the acquirer. You have been through the negotiations and discussions with the acquirer, you know which issues are sensitive and you know what you have agreed to implicitly or explicitly during the build-up to the agreement.

The answer to this question is very interesting, given that many business brokers or corporate finance advisers will see your competitors as the most obvious people to approach. However, in our experience, a direct competitor is seldom willing to pay a premium for your business. They will be very interested and will want to know absolutely everything there is to know about what you do and how you do it, but why would they pay a premium for what they believe they can do themse

There are many reasons why international acquirers look to South Africa for opportunities. We remain a good ‘springboard into Africa’, but more importantly, the country has a well-regulated economy with growth opportunities that surpass, by far, traditional growth rates in the developed world. These are obvious reasons for extending your research for acquirers into the international market. Of equal importance, though, is the influence a global strategy can have on local  acq

An earn-out is a deal structure in which the seller warrants that expected profit targets will be achieved, in order to justify the sale price agreed to. Typically the deal will look something like this: The sale price (often a really impressive number) is agreed to, based on past earnings and expected future earnings. The seller typically receives about one-third of this price upfront and the balance each year for two or three years, provided the profit targets are reached.

Personally, I have only ever lost deals at the point where, in representing the seller, I put a price on the table. If the price is too high you are deemed as ‘greedy’; if the price is too low, then what’s the point?! Our strategy is always to  request  offers from interested parties once we have shared sufficient information for them to make an informed decision. The request for offers is underpinned by a number of important elements and learnings: firstly, our experience ha