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...
I recently had a fascinating conversation about fees with another M&A professional. We weren't competitive because our firms worked in different geographic regions, so we had no hesitation in 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
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...
I'm convinced that only about 25% of saleable businesses end up having successful exits.
Yes. I believe that about 75% of the time, when a company could have been successfully sold, the result was either a transaction at prices or terms below market - or even worse - no sale at all. Most of the time, it was preventable. The biggest reason this happens is simply due to a lack of knowledge.
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
I’m not sure I should be typing this. It’s something I hate to admit about myself.
But the reality is all investors are subject to the same psychological imperfections. It doesn’t matter whether they are grannies buying ten shares of Google, or hotshot CEO’s acquiring billion dollar companies, none of us are so perfect that we are not susceptible to a great sales pitch. This is a really important consideration when selecting an M&A advi...
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...