Executives meet to complete the deal

Making the deal

What business leaders need to know now about buying, selling or raising capital

New market realities have changed what buyers, sellers and investors think is most important in making deals, including valuations, risk, planning adjustments and managing transaction expectations

Yet, the fundamentals of getting transactions done – buying, selling or raising capital – are largely consistent.

A business owner in selling mode is looking for a fair price and an exit strategy. A buyer is looking for a company that adds value – to an existing company or a portfolio – where the risks are accounted for and priced into the deal. There must be a partnership between capital sources and the business.

Webinar: business strategies for a successful transaction

Seller and buyer perspectives almost two years into the pandemic business environment.

While the COVID-19 pandemic slowed merger and acquisition (M&A) activity for many months in 2020, activity has gradually strengthened in recent months. Also, despite the disruption brought on by the pandemic, the fundamentals of getting transactions done – buying, selling and raising capital – are still largely consistent. During this webinar, we will review what the transaction world was like in the first few months of the pandemic; why deal-making quickly got back on track; and then take a closer look at what is currently motivating sellers and buyers. The webinar also will examine how both sides are weighing the valuation question as well as what issues C-suite leaders and boards should be considering during the deal-making process.

What you need to know about making the deal

Two women discuss making a deal

What affects deal activity?

  • Possible federal tax changes
  • Value opportunity for sellers
  • Uncertain times driving bullish buyers
  • Market consolidation
  • Boom in baby boomer retirements
  • Balance sheet improvements

What to consider when determining whether to sell?

  • Year over year quality cash flows
  • Resilience through the pandemic
  • Whether you are running a lifestyle business or a value business
  • Retention of key talent
  • Avoid the rush to sell
  • Exit planning mindset
  • Possibility of waiting until next year

How do family business owners know they are ready to sell?

  • I’m done – Many owners no longer want to bear the effort and risks of their business.
  • Vacation home effect – Some owners who have spent time working remotely have enjoyed their flexible schedules and time with family and friends.
  • Death and taxes – Many owners are at or near retirement and are concerned about the potential for higher corporate, personal income, capital gains and dividend taxes.
  • How much is enough? – The wealth accumulated in private companies is illiquid and many owners have determined the after tax proceeds from a sale will last for an extended period of time.
  • What’s next? – Owners are wary of the next “crisis” and how it could affect their companies.