Tech M&A - How to Plan for A Successful Exit

Budding and seasoned entrepreneurs know that building a business from the ground up and then taking it public or selling it for a handsome sum is the ultimate end game. But, just because the desire and diligence are there does not mean that it will actually come to fruition. It can take months to years of strategic planning and perseverance before the pursuit of a viable exit plan is even a possibility. And, with such fierce competition in so many sectors, especially the tech world, taking the right steps to position your company for a well-timed exit will prove vital to the success of the process. Here are some ways to ensure that your company can implement a successful exit strategy:

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7 M&A Seller Mistakes & How to Avoid Them

Plenty of companies embark on the creation and development of a business with the hopes of selling it for a handsome sum down the line. But, the number of those who have aspired to make this dream a reality and those who have actually managed to achieve it diverge drastically. After all, selling a business is not an easy task, and it can take months to years before it actually comes to fruition. Even companies that find an interested buyer and begin to go through the acquisition process often make costly mistakes that affect the terms of the deal or end up killing it completely. Here are seven common mistakes sellers make and how to avoid them:

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6 Common Questions Venture Capitalists Ask

Startup founders know that sourcing and then actually getting an infusion of venture capital can be quite a feat. The economic climate is always in flux, as is the nature of the competitive landscape. As a result, startup founders must do their research before approaching any potential venture capitalists (VCs). It is essential to know the type of businesses the VCs tend to invest in and how well those ventures are faring to ensure the right avenue is pursued. Of course, startup leaders must also be aware of the expectations and requirements the VCs will have, so that they can be well prepared in advance. VCs will no doubt have a ton of inquiries, and if things progress, a lot of concrete data will be requested and scrutinized. Here are some common questions startup leaders must be prepared to answer:

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5 Roadblocks to a Timely Close

It takes a lot of diligence and hard work to close deals, especially mergers and acquisitions, and there are ample opportunities along the way for things to get derailed. Even if a deal manages to stay on track, it is all too common for the closing date to be postponed and postponed because of both foreseeable and unforeseeable obstacles. Here are five common roadblocks to a timely close and some tips on avoiding them:

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4 Business Sale Deal Killers

Companies buy and sell all or part of other businesses on a pretty regular basis, but getting through the sales process isn’t always easy to do. There are plenty of times throughout the life of the transaction that things can easily go wrong, from the very initial discussion to sitting at the closing table itself. Although there are a lot of different reasons that the transaction may fall apart unexpectedly, there are some deal killers that pop up more often than others. Here are four ways a business sale can get derailed:

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5 Tips To Attract Private Equity

Companies of all sizes and in all sectors are almost always in need of capital infusions, at least at some point in their existence. These days, there are several interesting ways for companies to raise the funds they need. Private equity can be particularly helpful for companies looking to grow substantially, tap entirely new markets, acquire another entity, exit for a handsome sum in the future, and/or simply use capital to expedite any number of other, well-planned goals. But, obtaining an investment from a private equity firm is usually a lot harder than obtaining it from other sources. Companies hoping to leverage this potential avenue have to be at the top of their game. Here are 5 tips to attract private equity:

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Exit Planning: 5 Steps to Success

One of the most rewarding aspects of starting and growing a business is being able to sell it for a handsome profit at some point down the line. It is a true mark of success when the founders of a business manage to sell it off for millions of dollars and can retire from working altogether if they so desire. Of course, getting to that point is far from easy. In most cases, it takes years of blood, sweat, and tears, and even the most diligent workers may not ever reach this lofty goal. However, there are certain measures business leaders can take to help set themselves up for success. Here are some important steps to take to ensure a solid exit plan:

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Selling a Business: 4 Key Points

Many entrepreneurs dream of growing a business quickly so that they can sell it for a handsome profit at some point. However, many of these motivated individuals may not quite realize just how difficult the growing and selling processes actually are. Even the most successful businesses have had trouble finding and closing favorable deals, as seemingly trivial issues can become quite significant once it is time for everyone to sign on the dotted line. It is important to go into the sales process knowing exactly where the business stands and precisely what sort of things to expect from any prospective buyers. Here are some of the key things to consider before jumping into the complex process of selling a business:

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Understanding Working Capital Hurdles in M&A

After parties decide they wish to embark on a merger or an acquisition (M&A), a lot can change at any moment that could alter the terms of the deal or kill it altogether. One of the buyer's understandable concerns is that the company it inherits won't be on the same financial footing it was when the decision to purchase occurred. Given how long it can take to close the deal, there could be a change in the acquired company's assets or liabilities that could significantly affect the business's value and future. As a result, the dealmakers usually rely on the inclusion of a working capital hurdle. This is a predetermined sum with respect to the required balance of assets and liabilities of the acquired company that the buyer expects. The amount usually factors into the purchase price so that if the company mishandles something during the transaction, the final price can be adjusted as needed. Here is what sellers need to do when it comes to handling that working capital hurdle:

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What to Do When You Get an Unsolicited Offer To Buy Your Business

You may not even be considering selling your business when you suddenly receive an offer from another company interested in buying it. Depending on how you feel about selling your company, this may be jarring or exciting. Irrespective of how you interpret the prospect, it is important not to get too deep into the conversation. In addition to potentially disclosing sensitive information, you may actually compromise your company’s bargaining power by revealing too much. Here are some tips on what to do when you get an unsolicited offer:

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