A founder of an IT based company had an unrealistic expectation on the valuation of his business solely based on his internet research. The business was most likely overvalued as much as 75% to 100%. How this potentially deal breaking fact was negated when buyer/seller chemistry created a situation where 1 + 1 actually equaled 3.
A $12M revenue company, with five equal owners, never could come to a mutual agreement on the urgency and the reasons to exit their business. While they all agreed to sell the business, they had completely different motivations and reasons for selling the business. This ended up driving six highly motivated strategic buyers away from the table. Without a consensus, the deal was abandoned due to the hopelessly divided opinions of the owners.
An ESOP – Employee Stock Ownership Plan and how an owner’s illness caused a huge drop in the value of the business and consequently the valuation of the ESOP. This ultimately ended in the termination of the ESOP when the business was sold.
A founder of a business, who absolutely loved what he did, was forced to sell his business because of pressure from family. The importance of structuring a business becomes evident to allow for either a transition where there is a meaningful life after their exit or that your business can operate without you.
Bill Vinck
Chapman Associates
Scottsdale, Arizona
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The post How Buyer and Seller Chemistry Created the Deal Dynamics where 1 + 1 = 3 appeared first on Business Exit Stories.
Pursuing Post-Exit Dreams & Hitting Pause On The Podcast.
How a Sales Price Went From 1X to 4X with the Stroke of a Pen
Part Two – Michael Richmond: What Happens When the Owners of a Company Don’t Know Why Their Company Was Valuable
Part One – Michael Richmond: Why a Company That Was Growing Exponentially Couldn’t Get Sold
Part Two – Linda Broom: Why a Business Growing By Leaps and Bounds Couldn’t Get an SBA Loan
Part One – Linda Broom: The One Thing You Can’t Forget When Selling a Business – If You Do It Can Cost You Big Time
Why You Shouldn’t Buy a $400,000 Ferrari Before Your Business Sale Closes
A Success Plan That Took a Business Worth Million to Zero
What Is Pre-Due Diligence and How It Can Make You Millions
How Two Partners in a Successful and Growing Business Managed to Take It to Zero When They Decided to Sell
How Skillfully Crafting A Story Regarding Your Exit Can Turn Your Biggest Loss Into The Reason Why A Business Is Sold
Why Certain Types Of Buyers Will Pay More Money For The Same Business
How an Entrepreneur’s Ego Took a Deal from $30M to $1.2M
How To Sell Your Company For Less Money But End Up Putting More Cash In Your Pocket
How Doing the Right Things Turned a $20M Sale into a $40M Sale
When Issues Surface in Due Diligence, You May Wish to Take A 2nd, 3rd, and 4th Look At Other Critical Aspects Of The Business
From Making Money as a Side Hustle to a $19M Business Losing Money
Going from a Meager Six Figure Walk Away Exit Offer to Millions Plus a Second Bite of the Apple on a Subsequent Sale
How An Entrepreneur Exited Their Business After A Cancer Diagnosis
How the IRS Can Kill a Deal Without Breaking a Sweat
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