This month’s column features the 10 Most Common M&A Transaction Mistakes, as published by the Alliance of Merger & Acquisition Advisors.
We’ll address these in future issues, but for now here’s AMAA Top Ten.
- The owners do not understand the value of the business.
- The owners have an unrealistic price in mind.
- The owners do not understand the investor’s motive.
- The owners do not have proper counsel.
- The owners try to sell to the wrong people.
- The owners assume the best investor is local.
- The company is not positioned for sale.
- There is improper documentation.
- The owners do not plan for the sale.
- Don’t be the first to mention price.
To this list I’d add one more cardinal error: The owners underestimate the importance of CONFIDENTIALITY.
If you know of a business owner who’s thinking of selling or buying a business and who might benefit from a complimentary consultation with us, have them contact me, or any of the M&A professionals at www.bradwaygroup.com
By: Mike Ertel, Transworld M&A Advisors