Sale Prep Tips

The cost of audited financial statements is typically minuscule relative to the value of a marketable company...

It is not unusual for large companies to have at least one active or threatened legal dispute at any given time, so it is generally not feasible... 

Buyers generally prefer companies with a well-defined point of differentiation. It could be superior products, faster lead times, outstanding support... 

We find that many clients need to scramble to chase down contracts when it is time to set up a data room, which can obviously delay the...

Private equity buyers are increasingly active in the M&A market, and they typically prefer to invest in companies where the owner is several years away...

EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the most widely-used measure of profitability in North America. The rationale is...

A year or so before launching a sale process, we recommend identifying unprofitable lines of businesses with a view to discontinuing them...

While it is important to be able to articulate a growth strategy to potential buyers, we do not recommend heavy investments in R&D projects...

Buyers invariably look at the client’s website to get a feel for the professionalism of the business...

Most buyers understand the importance of a committed and capable management team. Especially in situations where the owner plans to retire...

Most CPAs wisely recommend that business owners hold any real estate in a separate legal entity. The reason is simple...

Most M&A transactions have a purchase price mechanism based on the company’s net working capital (NWC) at closing...

Many sellers are unaware of the significant tax implications of the M&A deal structure. In the US, buyers generally prefer..

Most private equity firms are interested in inorganic ways to grow the business. Strategic acquisitions often bump a company up into...

We recognize that pricing is generally more of an art than a science, and every sales opportunity should be considered on a case-by-case basis...

It typically takes six months to sell a business in a competitive process, so sellers need to hope that...

We recognize that patents are expensive, time-consuming, and often tough to enforce, but we encourage...

Buyers never buy a manufacturing business without inspecting the facilities. They don’t expect perfection...

Buyers always prefer businesses operating in real estate owned by a related party (typically a sister company), so it is feasible to renegotiate the lease as part of...

Merrimack recommends that sellers consider a Phase I environmental survey of the real estate even if it is leased if...