{"id":269,"date":"2024-04-17T13:30:52","date_gmt":"2024-04-17T13:30:52","guid":{"rendered":"https:\/\/businesss.pro\/?p=269"},"modified":"2024-04-18T09:44:17","modified_gmt":"2024-04-18T09:44:17","slug":"about-exits-ma-deals","status":"publish","type":"post","link":"https:\/\/businesss.pro\/about-exits-ma-deals\/","title":{"rendered":"About Exits \/ M&A Deals"},"content":{"rendered":"\n
How does a company exit at a good price? How does the purchaser buy at a good price?<\/strong> What else matters? <\/strong><\/h5>\n\n\n\n
A corporate auction may sometimes improve the starting price, but first a seller company needs to get to the best starting price. And potential buyers will have their own agenda.<\/h5>\n\n\n\n

An M&A deal is typically 10% tax, 10% legal, 10% economic and 70% psychological i.e. behavioral. <\/p>\n\n\n\n

In this article we briefly discuss some of the factors for buyers and sellers to check out before any M&A\/exit deal.<\/p>\n\n\n\n

Prepare for the deal:<\/strong><\/p>\n\n\n\n

There are a number of stages for all sides including the following. Preparing objectives, reasons, information, advisors and the business itself. Identify candidates. Auction, woo and negotiate. The seller will check the buyer has finance in place. Execute the deal. Post deal integration.<\/p>\n\n\n\n

What types of deal do you want?<\/strong><\/p>\n\n\n\n

There are many ways to cut the deal. Do you want a share sale?  An asset purchase?  A management buyout by existing management? A management buy-in by a new hungry but experienced team? Or a just an exclusive license or supply contract. Much will depend on tax, who is the stronger party and the overall circumstances \u2013 see below.<\/p>\n\n\n\n

What are the seller\u2019s reasons for selling?<\/strong><\/p>\n\n\n\n

The seller will have a reasonable answer to this question. Opportunity to make a capital gain? Realize opportunities? Forced to sell \u2013 bankruptcy, death or sickness? Retiring? Increased regulation? Increased competition or failing business? If the latter \u2013 is there a turnaround opportunity or an asset opportunity for the buyer?<\/p>\n\n\n\n

What are the buyer\u2019s reasons for buying?<\/strong><\/p>\n\n\n\n

In the Israeli tech sector, the buyer typically wants access to a new product or new technology. But not always. Other reasons for buying include access to new customers or sector, economies of scale, market dominance, turnaround opportunity, asset opportunity. But the buyer must do due diligence and be careful not to over-spend.<\/p>\n\n\n\n

What are the main methods of sale?<\/strong><\/p>\n\n\n\n

Methods of sale include a trade sale, financial sale, auction, IPO, exclusive license or supply, buy-out, buy-in.<\/p>\n\n\n\n

Questions to ask before selling a business.<\/strong><\/p>\n\n\n\n