Most people mistakenly think that selling their company is a scientific process. It is anything but science. It is art in its purest form. While it is true that significant financial analysis is required to determine a likely acquisition price, the primary factor in generating a premium-priced, all-cash deal for the seller is controlling the psychological battlefield of negotiations. This is the "art of the deal." First, one must understand the process for what it is: a win-lose situation. One side prevails. If you are selling a middle market company (2 dollars-250 million dollars), the primary objective is to generate the maximum attainable price in an all-cash deal. If you are acquiring, the sole objective is to purchase the company at the minimum possible price; in fact, you hope to "steal the company." If the seller is being advised by a sophisticated acquisition consultant, the eventual acquirer will be large and synergistic. The value of the dollar today makes foreign acquirers unusually attractive. Synergistic acquirers will be able to pay the highest premium price for the seller and still generate an adequate return on investment.
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