Table of Contents:
- About the Author
- How to Work with Wyatt Matas
- The Anatomy of Selling a Business
- Understanding the Acquisition Process
- Building an M&A Team
- Developing an Exit Strategy
- Confidentiality in the M&A Process
- Key Terms of the Letter of Intent
- Prepare for Due Diligence
- Addressing Legal Concerns
- Appendix A: Sample Due Diligence List
- Appendix B: Sample LOI
- Appendix C: M&A Glossary
Selling a business can be complicated. Brokers, investment bankers, CPA’s, attorneys and other advisors tend to want to make it even more complex in order to justify their fees. It is important for the owner to have at least a basic understanding of the acquisition process and the associated terms to ensure he can tell fact from fiction. Understanding the process of selling will help the owner plan appropriately for their eventual exit and perhaps even increase the value of the business. Our hope is that this paper demystifies the process so business owners can make sound decisions about their future.
This white paper goes beyond just explaining the process. There are plenty of articles out there that provide basic information. This paper pulls back the curtain on the acquisition process and provides an in-depth view of the anatomy of selling a business. We cover everything from the time an owner starts to consider selling to the time they close and transfer ownership.
We wrote this white paper to our merger and acquisition clients, mainly those that were in the process of selling their businesses. We now provide this paper to clients preparing to go to market with their businesses. While we spend a lot of face-to-face time educating clients about acquisitions, many find the white paper a helpful reference tool as the process moves along. They often reference the paper while talking to us or their attorneys. It keeps all advisors on their toes when they have a well-educated client.
The paper can also serve as a strategic guide to those considering an exit that might be several years away. Many times, companies make the decision to sell 6-12 months before actually going to market. There are not many strategies that can be deployed to positively influence value at that point. We outline a wealth creation strategy for a company that can be used as a strategic planning process to ensure they are driving value year after year. Think of it as a business planning tool.
Finally, this document is a living document. We will continue to update it periodically as we devise new tools or expand on topics. For instance, in mid-2017, we will be releasing version 2.0 that will include “Knowing When to Sell” and “Knowing What Your Business is Worth”. We will also be expanding the Appendix to include an M&A Glossary.
Thank you for requesting the Anatomy of Selling a Healthcare Business