Insights
Offers & due diligence, page 2
Offers & due diligence
How can I tell whether an unsolicited offer reflects fair market value?Four checks to judge an unsolicited offer, the signals that it sits below market, and the only reliable way to know for sure.
Offers & due diligence
What happens after I receive a letter of intent to buy my business?What a letter of intent commits you to, what to negotiate before signing, and the sequence of steps from signed LOI to closing.
Offers & due diligence
How long does due diligence usually take when selling a midsize company?How long due diligence usually runs for a midsize company, what makes it faster or slower, and how sellers can shorten it.
Offers & due diligence
What commonly causes a business sale to fail during due diligence?The usual reasons sales collapse in due diligence, the early warning signs in your own company, and how to deal with them first.
Offers & due diligence
How can I reduce the risk of a buyer retrading the price before closing?Why buyers retrade after exclusivity, how to remove both their reasons and their leverage, and how to tell a fair adjustment from a tactic.
Offers & due diligence
What deal terms matter besides the headline purchase price?The deal terms that decide what you keep and what risk you carry after closing, and what sellers usually push for on each one.
Offers & due diligence
Should I accept an earnout when selling my company?When an earnout fairly bridges a price gap, when it is a hidden discount, and the terms that decide whether it ever pays.
Offers & due diligence
How can I compare an all-cash offer with a higher offer containing seller financing?A simple method to compare a cash offer with a bigger offer that includes a seller note, after time and risk are priced in.
Offers & due diligence
What representations and warranties should a business seller expect?The promises sellers make in a purchase agreement, which ones matter most, and the tools that keep them accurate and limited.
Offers & due diligence
How much working capital must remain in the company at closing?How the working capital peg is set, a worked example of the price adjustment, and where sellers lose money on it.
Offers & due diligence
How can I protect myself from post-closing liabilities after selling a business?The contract protections that cap what you can owe after a sale, plus the loose ends the purchase agreement does not cover.
Offers & due diligence
Should I sell company assets or ownership interests?How an asset sale and an ownership sale differ on liabilities, contracts, permits and taxes, and when each one fits.