Seller Strategies for Mastering the M&A Process: Initial Planning, Negotiation Process, Post-Closing Matters

Description

Preparing a business for sale is a fulsome process that requires careful preparation and attention by the seller to both legal and business considerations at each stage of the transaction. Specifically, a seller must ensure that its business matters are well organized and are in order, records are well-maintained, and financials are accurately represented. Failure to properly attend to these can lead to various challenges, complications, and delays both during the pendency of the M&A transaction and potentially thereafter.

For business owners considering an M&A transaction as exit, it is critical to find the right buyer, and limit liability after closing. For an M&A transaction where the seller will roll over some of its equity to the buyer or remain as an employee of the buyer for a period or where there is an earnout as part of the transaction, the seller must make sure it has negotiated proper parameters for the integration of the entities and the involvement of the seller in the business after closing. No matter whether or not the seller will be involved in the business going forward, the seller is well served by identifying its goals prior to beginning a transaction and then evaluating potential buyers to see whether a potential acquirer aligns with their goals.

By conducting a comprehensive review of the business and addressing legal risks, a seller can enhance the value of the business and increase the chances of a successful sale while safeguarding their interests along the way.

Listen as our authoritative panel explores the most important considerations for sellers at each stage of the M&A process. The panel will highlight the legal and business aspects that demand attention throughout the process.