Cray Kaiser White Paper:
Essential Steps to Getting Your Business Ready for a Merger or Acquisition
Preparing to sell your business is a complex process that requires careful planning and strategic decision-making. From getting your financials in order to assembling the right team of advisors, every step plays a crucial role in ensuring a smooth transition.
In this video, Deanna Salo, Managing Principal at Cray Kaiser, shares key insights on what business owners need to consider before an acquisition or merger, helping them maximize value and successfully navigate the journey to their next chapter.
Key Points covered:
- M&A Trends: Business owners are either passing companies to family or selling to third parties (often private equity).
- Preparation Matters: Start early, get financials and processes in order.
- Financial Readiness: Audits and documentation boost credibility for buyers.
- Organizational Clarity: Have a structured leadership chart and clear roles.
- Advisory Team: Lawyers, bankers, and wealth advisors are crucial.
- Valuation Strategy: Market demand, not just retirement goals, determines business worth.
- Confidentiality: Use NDAs before sharing financial info.
- Letter of Intent (LOI): Clearly outline deal terms (price, structure, payment).