M&A Insights & Industry Articles from BMI Mergers & Acquisitions

Insights

Strategic Acquisition Planning: Evaluate the Target and Buy for the Right Reasons

It’s natural for business owners to dream of expanding their influence and becoming the “800-pound gorilla” in their field. Growing your business is a worthy goal, and acquiring another company can be a rapid way to enhance your company’s value and reach. However, growth through acquisition should be driven by strategic considerations, not just size…

Certified Business Broker Intermediary

Why use a Certified Business Broker Intermediary Professional? (Re-Published with Permission of the International Business Brokers Association.) Do thoughts of selling your business ever cross your mind? As a business owner, you certainly know that the day will come when you will walk away from your company’s operations. Selling your business will likely be one…

Selling Your Business – Keeping it Confidential

The business press announced in February 2014, that Comcast was purchasing the cable business of Time Warner.  As two public companies, such an acquisition must be made public according to the rules of the SEC.  If it even happens, the process will take months but already customers are concerned about rising prices, content providers are…

Buying or Selling a Business with an Earn out – Panacea or Pitfall

Growth Charts
What is an Earn out? In a business sale transaction, an earn out is a stream of future payments that are contingent on the achievement of some future benchmark or criteria.  For example, a simple earn out might look like this: “If total revenue exceeds $10,000,000 in the next calendar year, then seller shall be…

Due Diligence – Early Preparation

Once you’ve agreed to price and terms on a transaction with a potential acquirer or investor, the next step is typically the arduous process known as due diligence. Hopefully you engaged in pre-sale due diligence to make this step go much smoother. Due diligence is the confirmatory period where the party investing or acquiring your…

Confidentiality

When it comes time to sell your business one thing that you as a seller will have to do is divulge information that is highly confidential and imperative to the success of the business. Obviously, this type of information in the wrong hands can be seriously detrimental to your operations moving forward, particularly in the…