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 […]
Stay Bonuses Add Value When Selling A Business
We’re selling a business in which a management team member holds a minority equity stake. This critical employee stands to get a small windfall in the sale. On top of that, the seller was telling us she meant to give this employee a nice financial gift as a thank you afterwards. That’s where we pumped […]
The Happiest Business Owners Know What’s Next
I recently came across Bo Burlingham, the former executive editor for Inc. magazine and author of several books, including Finish Big: How Great Entrepreneurs Exit Their Companies on Top. What I learned from his book is many business owners are unhappy after selling their companies. It doesn’t really matter how much someone got for their business – some sellers are delighted while others […]