mergers and acquisitions attorney
Preparing Your Business for Sale: The Two-Year Exit Plan
Whether you are running an established business or a growing startup, the ultimate goal for many owners is a successful exit. But selling a business is rarely as simple as finding a buyer and signing a contract. To maximize your valuation and ensure the deal actually closes, you should begin the preparation process long before you receive a letter of intent (LOI). This article discusses what I will call the "2-Year Rule" for maximizing the value of your business and assuring a smooth transition. Don’t wait for the LOI to start your preparations. Assemble a team of advisors, including legal, financial, and M&A experts, to guide the process comprehensively.
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Why Asset Deals Dominate Small Business M&A—and When Stock Deals Actually Make Sense
In the purchase and sale of small and medium‑sized businesses, deal structure often matters as much as price. Buyers and sellers may reach agreement on headline valuation, only to discover that how the transaction is structured dramatically affects taxes, risk allocation, and whether the deal works at all. Most closely held businesses are sold through asset deals, not stock deals. That pattern isn’t accidental. Asset purchases give buyers cleaner risk profiles and better tax outcomes, which in turn helps support higher valuations. Understanding why asset deals dominate, why stock deals are usually discounted, and how modern hybrid structures bridge the gap is critical for business owners, buyers, and advisors navigating a transaction.
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Business Acquisition: Key Takeaways
Part 2 on buying a business. In this part of the series, the buyer reflects on his unsuccessful quest to purchase a small existing company. He shares some suggestions for how to increase the chances of buying a business. He suggests dealing directly with sellers rather than brokers, setting up funding early, and seeking mentorship instead of paying for promises of success. Ultimately, this buyer did not purchase a business due to mismatches between his criteria and available options in his price range.
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Sale of Small Businesses: Asset vs. Stock Purchases
This article summarizes the two main structures in purchasing a small business: asset purchases and stock purchases. Each has its advantages and disadvantages. Spoiler alert: in general the buyer favors an asset purchase, and the seller favors a stock purchase. The structure of purchasing a business is a major point of negotiation. Which road you travel will affect other critical issues such as the purchase price and timing of the transaction. Although the structure can be changed, the parties should consider and address the structure of a sale of a small business at the time that they negotiate a letter of intent. For most purchasers of small businesses, asset purchases are more advantageous. They provide greater safety in terms of liability and have tax benefits that stock purchases do not. There are limited…
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Selling a Small Business: Not as Easy as you Thought
Checklist for selling or buying a small business: Starting a business is relatively simple, especially if you have worked with a startup lawyer. Selling your small business, however, may be more challenging than you anticipated. Forming a new business is not challenging. You can form a business just as quickly as you ask your small business lawyer to file the papers with the corporations department or in Washington DC with the Department of Consumer and Regulatory Affairs. Selling a business is a lot more challenging than forming a business. There may be many reasons to exit and you now want to receive the full value (value is in the eye of the beholder of course) of the company that you started. You will need the services of your business advisers, your tax advisers and of course your mergers and acquisitions…
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