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Mergers and acquisitions (M&A) are a common occurrence in businesses today. When it comes to M&A, there are typically two types of buyers - financial buyers and strategic buyers. In this blog, we will specifically focus on strategic buyers. We will discuss what a strategic buyer is, how they differ from financial buyers, and the advantages and disadvantages of being a strategic buyer.

Goodwill is a critical concept in valuing a business, and it is important to understand how it is taxed to ensure that you are not hit with unexpected tax bills.

Bain has finally released its review of the 2022M&A market. While Bain caters to higher end clients who form the backbone of the economy, these businesses often work with middle and lower middle companies—or purchase them.

Selling a business is not like selling a product. The M&A process takes months, and sometimes years, requiring the dedicated attention of M&A advisors or a business broker, as well as a team of legal and accounting experts.

How much does it cost to sell a business? That depends on what resources you need. Research consistently finds that M&A firms lend considerable value to a deal, ultimately fetching higher sale prices and more favorable terms. Yet many sellers remain reluctant to hire an investment banking firm because of concerns about the cost of doing so. The result is a lot of DIY sales that never get off the ground, or that don’t realize their full potential value.

Family is complicated. It can be a source of joy and support but also immense drama and conflict. And while family businesses offer many benefits—a deep commitment to the company's success and often a more personal touch—they also bring many of the same challenging dynamics of family life to the business. So, when families can't agree on how to manage their family business or when to sell it, there's more at stake than just money. As a result, relationships can fracture, and the discord can sow discontent and dysfunction at the office, ultimately undermining the business.

When buyers and sellers can’t agree about the final sale price, your M&A firm may recommend a compromise: an earnout. Earnouts delay some portion of the final sale price contingent on ongoing performance by the business, usually by requiring that the seller/owner meet certain performance benchmarks. If you’re considering selling your Dallas business, know that an earnout is a powerful tool to bring to the negotiating table. But it also poses significant risk, and is not appropriate for all deals.

If you’re planning to sell your business, you might have dreams of retirement—or of moving on to your next venture. No matter what your dreams are for the future, achieving them begins with getting the right support today. Many owners make the mistake of assuming that, because they sell products and services everyday, they also have the necessary skills to sell their business. But you need an investment banking advisory firm for that. Selling a business is an extremely complicated undertaking that can easily become a full time job. Moreover, any buyer worth selling to will have an expert advisory team on their side of the negotiating table. You’ll be at a significant disadvantage if you don’t hire your own M&A firm.