Category: M&A Misperception

M&A Misperception and Dirty Secrets You Need Know Before Trying to Sell Your Business

Exit Execution

No One Can Sell Your Cash Well

by Basil Peters | October 6, 2013 | no responses

What I’m about to describe is difficult for some people to understand. Recently, I completely failed to convey this concept to an experienced professional accountant. The fact is, nobody can sell your cash well. What I mean is this: if you’re thinking about selling your company, I feel strongly that it’s desirable to strip out the cash that’s not absolutely necessary before starting the exit valuation negotiation with pr...

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M&A Misperception

Gold, Silver and Bronze M&A Services

by Basil Peters | July 25, 2013 | 2 Comments

I recently had a fascinating conversation about fees with another M&A professional. We have never worked in the same geographic region, and had no hesitation about openly discussing our firm’s fee structures. His firm is considerably larger than mine. They employ dozens of professionals, associates and support people. We agreed pretty quickly on what Read More

M&A Advisors

M&A Advisors Should be Local to Reduce Failures

by Basil Peters | May 1, 2013 | 4 Comments

Distance to the M&A Advisor (in miles)

When CEOs and boards begin to look for an M&A Advisor, they often start in one of the big financial centers like New York or Boston. For most transactions under $100 million, I believe an M&A Advisor more than a couple of hours away by car is usually a bad choice. One of the dirty secrets in the M&A Advisory business is large number of M&A Advisory engagements that fail to result in a successful transaction. It’s impossible to fin...

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Exit Execution

How Not to Sell a Business

by Basil Peters | February 6, 2013 | 4 Comments

How Not to Sell a Business

This is the first time I've described all of the things we did wrong the first time I tried to sell a business. It's also the story of the first time I lost several million dollars.

How Not to Sell a Business - Don't Blow The Biggest Deal of Your Life

This is a talk I gave to the Vancouver Chapter of the Entrepreneurs Organization (EO) on February 19, 2009. It is consistently the most viewed video on my blog. In this talk, I compare my f...

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Exit Execution

Only 25% of Saleable Companies Exit

by Basil Peters | January 26, 2013 | 9 Comments

Only 25pct of Saleable Companies Exit

I'm convinced that only about 25% of the businesses that could be sold actually end up successfully exiting. Yes. I believe that about three out of four times when a company could have been successfully sold, a sale did not end up happening - ever. And most of the time, it was avoidable.

The Frustrating Lack of Data on Exits

One of the most frustrating aspects of researching exits is the lack of data on transactions under $50 million, wh...

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Exit Execution

The Psychology of Exits

by Basil Peters | September 12, 2012 | 6 Comments

Basil Peters at the AM&AA Summer Conference 2012

When a saleable company fails to sell, it's often the seller's psychology that kills the transaction. Most of the time, the seller doesn't even know that they were the reason their company failed to sell. This talk describes the seller psychologies that can kill exits. The Psychology of Exits Presented at the Alliance of Merger and Acquisition Advisors Summer Conference July 10, 2012 in Chicago

Highlights:

Exit Timing

How VCs Block Exits

by Basil Peters | August 28, 2010 | one response

Most entrepreneurs don’t even know that a VC is likely to block an  exit when they accept the VC’s money. I didn’t when I started out —and neither did my friend who I describe in "Why VCs Block Good Exits". In my first company it wasn’t until the final extraordinary general meeting, when the shareholders were voting to approve the exit transaction, that I actually reali...

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