Each of our clients has had their own criteria for selecting the right potential buyer for them – different people have different preferences and priorities. There are numerous things to consider when selecting a potential buyer from price to cultural fit. This Deal Note® dives into some ways to discriminate among a handful of fully qualified buyers, to decide upon the one who is “just right” for your company.
Clearly economic terms are important, and price is clearly a discriminator. But there are other attributes that must be considered as well:
- Other deal terms are important, e.g., the ability of a buyer to close, does the buyer have the available equity and debt to complete the acquisition, what is the Working Capital Target and is it an acceptable look back period, etc.?
- Does the buyer’s strategy for consummating the transaction make sense to you as the owner? Does the sale to this buyer meet your expectations for the future of your company and its employees?
- How do your key staff members feel about the buyer? How does the chemistry feel between the key staff and the buyer?
- Has the buyer continuously behaved responsibly and responsive during the negotiation period?
Having an experienced investment banker will help you in the decision-making process. They would have seen dozens of similar deals and been able to assist you in guiding and assuring that the right data is presented and that the subtleties of making the final decision for finding your buyer is “Just Right.”
Have a great rest of day.
Bruce Andrews
Partner
