Selling Your Company: Seven Common Pitfalls That Produce Failure-Part I

摘要

For many owners, the sale of their company is the largest, most complex transaction of their career. Due to its magnitude and impact on their future, it also is one of the most stressful. A seller will often find solace and security, if he or she has an experienced, determined, but compassionate, acquisition advisor that can provide them guidance during this process. It can be especially helpful for selling owners if the advisory firm is headed by a self-made person. Usually this advisor will fully understand the intensity and depth of emotions that an owner is facing. Middle-market transactions are defined as deals valued between 2 dollars to 250 million dollars. There is very little information available on these deals to enable a potential selling owner to know what is involved in the sale process. Correspondingly, prospective sellers are often under numerous misconceptions that can be harmful. During my many years in acquisitions, I have talked to thousands of owners/entrepreneurs. From these conversations I have determined that the following seven pitfalls are the most common erroneous beliefs of middle-market owners.