Top 8 Reasons Buyers Walk Away From an M&A Deal
Making the decision to acquire a business can be a complicated process fraught with risk. Even when the financials look good and the potential rewards seem great, there are several reasons why a buyer might decide to walk away from a deal. Understanding these reasons can help sellers prepare for negotiations and improve the likelihood […]
How a Business Valuation Helps with a Management Buyout
A business valuation is a critical step in a management buyout (MBO) process, as it helps the management team understand the true worth of the business they are interested in acquiring. A management buyout occurs when a company’s current management team or key employees purchase a significant portion or all of the business from its […]
Don’t Sell Yourself (or your business) Short!
Lights, camera, action! Portage Founder and Partner Jim Friesen kicked off the inaugural episode of The Selling Successfully Podcast with special in-house guest, Portage Partner and Head of Valuations, Ryan Buist. Jim and Ryan candidly captured the need-to-knows and best practices for business owners regarding early planning and maximizing business valuation. Here are the 5 […]
Representation and Warranty Insurance in M&A
When selling your business, you make a set of promises to the buyer. You “represent and warrant” certain facts about the business. Essentially, you’re certifying that you provided accurate information and that there are no known issues pending (e.g., financial, legal, tax, compliance, etc.). If it turns out those promises are false, the buyer has […]
Selling Your Business Should Not Be A 50/50 Coin Flip
So, you’re ready to sell your business. You have an M&A advisor helping you, your numbers are in order, and you’re feeling confident. But did you know that only half of the businesses will successfully sell—and that’s with a qualified advisor? For years, member advisors of the International Business Brokers Association and the M&A Source […]
When Should You Have Your Business Valuated
As a business owner, the value of your company is more than just a number. Yet, it is essential to understand that number to make informed decisions for the future of your business. Business valuations help measure the value of a company using financial principles. It is useful in determining the fair market price for […]
The Interpersonal Side of Negotiations
The interpersonal side of a negotiation refers to the way in which the individuals involved in the negotiation interact with each other. This can include their body language, tone of voice, and how they communicate with each other. It is important for the parties involved in a negotiation to be aware of and consider the […]
Why 75% of Deals Don’t Close
Tom West is considered by many to be the founder of modern-day business brokerage. A few years ago, he calculated what percent of businesses on the market actually sell. For most small businesses, those with sales of $10 million or less, he figured fewer than 25% actually transition to a new owner. A 75% failure […]
How M&A Will Respond to the Next Recession
The M&A world isn’t quite sure what to expect in the next recession. Private equity players weren’t nearly as dominant through the last market downturns. But today those firms have $1.8 trillion in uncommitted capital they need to put to work. With money to spend, and a timeline to do it, private equity may help keep valuations […]
