Each Merger and Acquisition deal is different. There can be a lot of components in M&A purchasing agreements. An article from Meghan Daniels titled, “The Makings Of The M&A Purchase Agreement” outlines a range of facts.
Components Of The Deal
M&A purchase agreements have various components. Covered in these purchase agreements is everything from definitions and executive provisions to representatives, schedules and warranties, indemnifications and interim and post-closing covenants. Other key factors include closing conditions and break-up fees.
Advice For Sellers
In her article, Daniels includes a range of tips for sellers. She points out that negotiating a purchase agreement can be both time-consuming and stressful.
Business owners have to be careful not to let their businesses suffer while they are going through the process of selling. Selling a business is hard work. It is important to work with a proven broker.
Daniels notes that any serious buyer is likely to look quite closely at your business’s financials. This is another reason to work with key professionals during the process. You don’t want to wait until the last moment to get your financials in order. Prospective buyers will want to examine your finances closely before making an offer.
Use Trusted Pros
Another key point Daniels makes is that there will be tension. Every party is looking to protect their own best interests. Having an experienced negotiator in your corner is a must. Make sure your negotiator has bought and sold businesses in the past. He or she will understand the pitfalls and potential problems that may arise. Daniel’s view is that the sale price isn’t the only variable of importance. The terms of the deal must be taken into consideration.
There are many reasons to work with a business broker. A business broker understands the diverse complexities of an M&A purchase agreement. They have experience helping business owners organize their financial information and can prove invaluable during negotiations. Selling their business is an important business decision for a business owner to make. EBIT Associates can help guide you through the process of selling your business.