Category: M&A Misperceptions

Exit Execution

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...

M&A Advisors

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

Exit Execution

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...

Exit Execution

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. The Frustrating Lack of Data on Exits One of the ...

Basil Peters at the AM&AA Summer Conference 2012

Exit Execution

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: W...

M&A Advisors

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...

Angel Investing

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...

Angel Investing

My previous post showed how  the math behind venture capital funds determined venture capital exit times.  The post included a simple model to show what the median exit times really meant to entrepreneurs and angel investors. ...