Professionals

Confidentiality

If preserving confidentiality is a priority, the seller may want to restrict disclosures to fewer buyers to maintain tight confidentiality and avoid disruption to the business. The broader approach of providing information to everyone who signs an NDA extends the reach of the deal and could result in more offers.

However, more people knowing about the transaction limits the confidentiality of sensitive information. If competitors learn of the sale and leverage the information to pull customers and employees away, how would these events impact the value of the business?

Valuation

The seller will want a competitive price for the business. Strategic buyers may offer more than financial buyers because they can integrate the business into their existing operations. The strategic buyer may offer more but will typically move slower than the economic buyer.

Resources

The selling side wants a buyer with the resources to complete the purchase promptly. We hear stories from sellers about prospective buyers extending LOIs for multiple 60-day terms. The aspiring buyers do not secure funding for the close, so the seller cannot recover any wasted resources (time and money).

Fit

The seller may want a buyer who is a good strategic fit for the business and employees. Can the buyer communicate a path forward to grow and scale the business?

Developing flexible deal structures that are responsive to the needs of each business owner requires understanding. We aim to be thoughtful, polite, and responsive to the needs of professionals involved in the process and the owners they represent.