Introduction Discover one of the most straightforward ways to fund your business acquisition – through seller financing, commonly referred to as a “seller note.” Statistics show that a substantial 80% of small business sales incorporate some form of seller financing. In the middle market of M&A transactions, seller financing remains prevalent, typically comprising 10% to […]
Introduction Curious about the role of a third-party loan processor? If you’re considering financing the sale of your business, rest assured that a seasoned third-party loan processor can expertly manage every facet of payment collection, crediting, and disbursement from third-party sources. They streamline the day-to-day administration of your loan collection process. Wondering why you should
M&A Seller Financing: Third-Party Loan Servicing Read More »
Introduction In the world of business transactions, the best-laid plans can sometimes veer off course. Buyers, with all their good intentions, may find themselves in over their heads when it comes time to meet their financial commitments. Handling a buyer default can indeed be disheartening for a seller. As a seller, your readiness for such
A term sheet serves as the launchpad for negotiations, providing a focal point for both parties to zero in on the critical aspects of a transaction. Its primary mission is to pave the way for a comprehensive letter of intent (LOI) or purchase agreement by aligning the key elements. In essence, the term sheet is
Introduction The Letter of Intent (LOI) stands as a cornerstone in any transaction. In my perspective, it reigns supreme as the most significant agreement in an M&A deal, surpassing even the purchase agreement. Typically, a buyer will submit an LOI after carefully assessing the target and determining that the business aligns with their goals. Key
Introduction Earnest money deposits are a common feature in small-business sales but tend to be less prevalent in middle-market transactions. They serve as a tangible sign of a buyer’s commitment, showcasing their genuine interest in acquiring your business. However, when dealing with private equity groups and seasoned corporate buyers, earnest money deposits are almost never
“It’s not over until it’s truly over.” — Yogi Berra (1967) Many sellers make the mistake of taking their business off the market once they’ve accepted an offer. This can be a critical error. Our recommendation is simple: Keep your business actively listed until a definitive agreement is inked and all contingencies have been satisfied
Should I Take my Business Off the Market When I Accept an Offer? Read More »
How vital are negotiating skills during the sale process? Surprisingly, high-level negotiating skills aren’t the make-or-break factor you might imagine. This is good news for those of us who aren’t negotiation legends like Henry Kissinger, the former U.S. Secretary of State renowned as one of history’s greatest negotiators. However, there’s a catch. If negotiating isn’t
The ancient Greek storyteller Aesop once wisely proclaimed, “Honesty is the best policy.” At Morgan & Westfield, we firmly assert, “Honesty reigns supreme as the #1 asset in M&A transactions.” Is it conceivable to shroud a few imperfections within your business from potential buyers during the sales process? Can you get away with concealing critical
The price and terms you ultimately secure are significantly more influenced by your firm negotiation of the LOI than by your negotiation of the purchase agreement. Let that resonate. For the majority of sellers, your negotiation skills in the LOI hold greater importance than those in the purchase agreement. Affixing your signature to a robust
