Newsletter Articles

Negotiating Your Letter of Intent in the M&A Process

[caption id="" align="alignright" width="175"] By Jennifer Mailhes, Managing Director[/caption] Picture this – a buyer knocks on your door with what seems like an ideal offer and all you have to do is sign a letter to execute the deal. All too often M&A advisors see business owners sign a letter of intent (LOI) without seeking proper counsel, leaving little opportunity for negotiation, and often the seller in an unfavorable deal. The LOI can be the most important part of a deal and should be carefully designed so that the intent of both the buyer and seller is clearly defined, including what ...

READ NOW

4 Key Exit Considerations When Transferring to Insiders

[caption id="attachment_2833" align="alignright" width="175"] By Jennifer Mailhes Managing Director[/caption] Preparing the transition of your business can create different exit planning roadmaps depending on the state of your business or who’s at your final destination. Will it be a key member(s) of your management team or will you be succeeded by family? Regardless of your path, the main driver to make the transaction successful is beginning the planning process early to ensure the transition is clearly defined and properly communicated to all parties involved. When exploring options to transfer the ownership of your business internally, consider these four key factors: 1. Determine Transfer Type Are ...

READ NOW

3 Strategic Alternatives for Your Business

[caption id="attachment_1127" align="alignleft" width="175"] By Jennifer Mailhes, Managing Director[/caption] At any given point, a business basically has three strategic alternatives to consider – pursuing growth, restructuring to bring in more cash or selling the business – each has its own risks and rewards for the owner to consider: 1. Strategic Growth Plan Entrepreneurs can look to accelerate growth organically or through an acquisition. Whichever path, executing on a growth plan typically requires putting more risk into the business to achieve a higher value. Organic growth means leveraging the balance sheet to invest in new products, services or market strategies. For example, take a client ...

READ NOW

Keeping the Business in the Family

[caption id="attachment_1127" align="alignleft" width="175"] By Jennifer Mailhes, Managing Director[/caption] Transferring a family business to the next generation requires a delicate balancing act. Estate and succession planning strategies are not always compatible, and the older and younger generations often have conflicting interests. By starting early and planning carefully, however, it is possible to resolve these conflicts and strategically transfer the business in a manner that is aligned with the goals for all family members, whether involved or uninvolved in the business, and in a tax-efficient manner. Ownership Versus Management Succession One reason transferring a family business is such a challenge is the distinction between ownership ...

READ NOW

Establishing a Foundation for Strategic Acquisitions

Growth through acquisition is a strategy companies use to accomplish growth objectives at a faster pace in an effort to secure their position in a highly competitive and global market place. Acquisitions, especially in fragmented markets, are a viable option for companies to gain market share, increase product/service breadth and/or depth, grow their workforce, attain new technologies or expertise, expand geographically and diversify their customer base. If you are contemplating acquisitions as a part of your company’s growth strategy, you and your management team should keep in mind four key considerations for establishing a solid transactional foundation as outlined below. 1. ...

READ NOW