If you want to sell the company, please consider six things

I think, for the current wave of M & A, companies should think carefully about the "sell the company" issue. If you have a big business waiting for you to negotiate with you and they're ready to buy your business, consider the following six things before you sign a contract so that the deal can get the most out of it.

1. Why do you want to sell? Why buy?

I think this is a question that needs to be considered at the very beginning of every merger, and whether you and the board members are already thinking about whether it is a good time (and at what price to sell) to sell your company, as well as founders and investors Whether you have been able to communicate about mergers and acquisitions and whether you can reduce internal friction, and when both sides agree to deal, you should consider whether to organize the strategy committee to continue the follow-up M & A negotiations.

Buyers may because of your killer intellectual property rights, strategic value, customer base, or to attract talent acquisition, you understand the motivation of the buyer M & M in the end, for example, if it is for M & A, the buyer may emphasize M & A content retention staff leave salary plan, if the company's strategic value of the merger, then the buyer may reach a milestone in the future to provide incentive programs.

2. Have you confirmed the market?

Trying to understand what the value of a company is before signing a contract is to ensure that the deal is maximized. According to the market dynamics and the current timing, please help investment bank to deal with, if your company is concentrated in a certain industry, you can try to assess their own, if your product across several markets, investment banks will be assessed Another option, this action can help your trading process more efficiently and create greater value.

Is there a management bonus scheme?

If your company has been involved in several rounds of financing, investor priorities will be higher than the existing value of the business and managing a bonus program is one way in which management teams can actively participate in the M & A process.

4. After the acquisition, the staff is still re-appointment?

If the buyer values ​​employees, please consider whether the culture of both the company and the buyer can be compatible. How long does the buyer expect the employees to stay in? After the merger, the relevant guarantee for employees will also be another key point. For example, after the merger, no layoffs and signing Guarantee contracts, etc .; please solve these problems before the merger transaction, because it is most likely to affect the outcome of the negotiations an important factor.

Business management

After receiving the Term Sheet, the shareholding may be restricted. Please handle the relevant business management issues before the formal contract is received, which will allow the buyer to have more confidence in the merger.

6. Expert appearances

Well-known buyers will do all the tools and tactics in the mergers and acquisitions. In order to achieve the M & A results you want, you can seek the help of experienced M & A experts to reach mergers and acquisitions in the fight for concessions.