I Received an Offer, What Do I Do? A Blog Series on M&A Do's and Don'ts

Building a Business with Big Ideas and Strong Culture

The entrepreneur’s journey is not an easy one, though from the outside looking in, it might seem that for some, success is a mixture of luck and knowing the right people. However, if you’re in business you know: luck favors the prepared. 

There are over 30 million small businesses across the United States and the reality, according to the U.S. Bureau of Labor Statistics (BLS), is that 1 in 5 businesses will fail within the first year of operation.   

​​Despite the staggering failure rate business owners face, the success stories of entrepreneurial-minded organizations beating the odds and achieving remarkable success are a testament to resilience, perseverance, and a willingness to learn from setbacks.

If you have a successful, profitable business, congratulations: you have beaten the odds and represent an attractive acquisition target for another company. 

 

What To Do When You Receive an Offer Out of the Blue?

You may have received inbound enquiries from buyers. While unsolicited offers are exciting they are usually not what they appear to be. You may have even shared certain financial information without a real expectation of a next step. 

But now you have an offer to buy your business. It could be more than you’ve ever imagined. It could be so low that you don’t pursue it.

Our goal in this series is to educate entrepreneurs so that they understand the full spectrum of support, options and more importantly, the value Strategic Exit Advisors (SEA) is able to unlock as your trusted advisory team.  With experience across industries, advanced insights and analytical tools, SEA’s team has the expertise to optimize deal structure and ensure you achieve your best exit – the exit you deserve

We know that in this environment, buyers are investing heavily in “proprietary deal flow” which means reaching out to businesses directly and getting good “off market” deals. However, we want you to be prepared and protected.

The goal of this 8-part series is to provide entrepreneurs with the tools to field inbound offers and know exactly what steps to take to help you maximize value, maintain your legacy and provide opportunities for your employees. 

 

The Do’s and Don’ts of What do Do When you Receive an Offer

As an intro to this blog series, “I Received an Offer, What Do I Do? A Blog Series on M&A Do’s and Don’ts” our goal is to help build a strategy on how to react to unsolicited offers and concrete steps to take to make sure you are maximizing value, protecting your employees and people, and maintaining your legacy.

Over the next few months we will focus on:

  • The Offer: When to Seek a Trusted Advisor

The journey begins with “The Offer,” which is usually unexpected and flattering. What questions should you ask? Who should you involve in your first conversations? Discover when it’s time to seek the guidance of a trusted advisor. SEA’s experts will shed light on the nuances of an offer, the different types of offers, and the various points that are important for you to understand. 

  • Demystifying Deal Points: Understanding the Essentials

Deal points and assumptions form the backbone of any offer. In this section, we demystify these essential elements, providing a clear understanding of what makes a sturdy offer. SEA’s expertise will guide you through the intricacies of deal points shining light on what the important questions are to ask.

  • Strategic Information Release: Timing is Everything

Timing is critical when releasing strategic information during an acquisition. Learn the art of strategic information release and how to time it perfectly for maximum impact. SEA’s insights will help you navigate this delicate process, ensuring you maintain control and leverage throughout the negotiation.

  • Sub-Negotiations Unveiled: Beyond Price

Beyond price, sub-negotiations play a crucial role in shaping the success of your transaction and your life post-settlement. Uncover the nuances of sub-negotiations with SEA’s insights, exploring the often-overlooked aspects that contribute to a comprehensive and successful deal. There are hundreds of negotiated deal points beyond price that find themselves in the final purchase agreement and affect you and your employees for years post-close.

  • The Art of Due Diligence

Concluding an acquisition requires finesse and expertise. In this section, SEA shares its experience and overview of Due Diligence. From finalizing terms to navigating the legalities, gain valuable knowledge to ensure a smooth and effective conclusion to your transaction.

  • Common Pitfalls: Negotiation NoNo’s You Should Avoid

Negotiations come with pitfalls, and avoiding them is key to a successful acquisition. SEA highlights common negotiation no-no’s, offering guidance on steering clear of pitfalls that could derail your deal. Learn from the experiences of seasoned professionals to enhance your negotiation skills.

  • Navigating the Psychological Terrain: Ego and Emotional Intelligence

The psychological landscape of a transaction involves managing egos and emotions. SEA delves into the intricacies of navigating this delicate terrain, offering insights into the role of emotional intelligence in fostering a positive and constructive negotiation environment.

Join SEA in this series as we dive deeper into essential strategies and potential pitfalls, as we seek to empower entrepreneurs to make informed decisions and achieve their acquisition goals. 

 

The SEA Difference

When entrepreneurs work with SEA, they are able to collaborate with a team of M&A experts to overcome challenges and optimize their strategic exit. At SEA, we are committed to understanding your transition goals and tailoring our process to ensure a clearly defined outcome. 

Whether you’re on the buy side or the sell side, our comprehensive advisory team is ready to navigate challenges, optimize strategies, and contribute to a seamless and successful exit. 

Reach out to us anytime at (215) 489-8881 or schedule a conversation.

Strategic Exit Advisors