Author Archives: cbgroup

An Exit Plan for your Business

Selling a business is tough especially when it is your first time to do so and not a lot of people to ask for advice about it. Here are some tips that might help you along the way.

  1. Time – you must have ample time to go through the process of closing and selling your business. Having enough time to think of your options before making a decision is essential.
  2. Exit strategies such as public offerings (IPO), strategic acquisitions, and management buyouts (MBO).
  3. To maximize the value of your proceeds, you might want to try estate planning, gifting, trusts and asset protection.

The M&A Timeline

  1. Contact the business owner.
  2. Send/receive a Teaser
  3. Sign a NDA (Non Disclosure Agreement)
  4. Handle any post-closing adjustments and integration.
  5. Submit/solicit an indication of interest (IOI).
  6. Conduct management meetings.
  7. Ask for or submit a letter of intent (LOI).
  8. Conduct due diligence.
  9. Write the purchase agreement. APA / SPA
  10. Close the deal.
  11. Handle any post-closing adjustments and integration.

How To Grow Your M&A Business

  1. Buying the company’s direct competitor to increase the company scale and scope.
  2. Acquire early stage companies.
  3. Buy companies that can benefit from your current resources.
  4. Acquire companies in similar industries and use their strength to support your own.
  5. Merge with like minded business for new geography and customer segment access.
  6. Venture into companies with much higher growth for a change.