Of the business owners I speak to, and the attendees at our Masterclasses, the vast majority have experienced some form of deal opportunity which has not concluded or has failed dismally below original expectations. Invariably the owner is left asking what on earth happened, and why did this look like such a good deal, but resulted in endless frustration, wasted energy and time? Firstly, it must be said that business owners rarely have the experience to match that of the typi

Risk is a critical element of any deal, and it would be remiss of a seller to assume that future risk is entirely the acquirer’s problem. That said, acquirers often lack creativity when it comes to managing post-acquisition risk. They assume that the only way to manage their risk is through an earn-out structure: Keep the owner in the role of MD for a couple of years, and only pay out the full purchase price once certain profit warranties have been met. As I have mentioned in

This topic always stimulates an interesting debate. It is critical that you know what is really important to you, and that you drive the best possible process to deliver exactly that. However, be careful not to allow your assumptions about what your non-negotiables are to scare off acquirers who may have got very close to meeting them but believed that you would not budge. Keeping an open mind allows you to find out who is really interested in your business, and to what value

So often, the reality is that the sale of a business is highly emotional for the seller and entirely commercial for the acquirer. As a seller, you need to be aware of this and take it into account when responding to an acquirer’s questions. For example, when an acquirer asks how you have managed to keep staff morale at a high level, one’s instinctive response may be to talk about the fact that the business is like a family and staff see you as their “father”. That would be an

Most business owners simply cannot resist the urge to go out there and look for a deal. They know deep down that they have not thought through all the details, but are somehow hoping for a quick win , thinking that they just might know a shortcut to a great deal. Sorry to burst your bubble, but this is seldom the case. In light of that, prepare properly and be ready for the long haul, knowing that if a quick opportunity comes up you can take it, but not at the risk of other o