How to Negotiate the Sale Price of a Business

hosted by: David Mariano, Director and head

of the firm’s Buy-Side advisory practice

How to Negotiate the Sale Price of a Business

After preparing your business for sale and sorting through offers and management presentations, it’s time to negotiate the best price for your business. Know what to expect so you don’t leave money on the table.

Mark Filippell is back to discuss how to negotiate the sale price of a business. This conversation is based on Chapter 11 of Mark’s book, The Mergers & Acquisitions Playbook: Lessons From the Middle Market Trenches

Key questions in this episode:

* What is a letter of intent (LOI) and what is it’s purpose?

* What work has the buyer done in order to put a number in the LOI (the sale price of the business)?

* What are some of the main components of an LOI (at 05:09)?

* What does an escrow arrangement do and how does it affect the seller?

* Why is working capital so important in the LOI?

Key points in this episode:

* Where to find a sample LOI for your reference.

* The importance of understanding terms of the escrow.

* Why the buyer needs exclusivity from the seller (at 12:02).

* Why the final offer is not always the final offer.

* How to manage multiple offers.

* Some good advice for the seller with a signed LOI in hand.

Resources mentioned in this podcast

* Click here for access to training and templates

* The Mergers & Acquisitions Playbook, by Mark Filippell

Listen to Fully Invested below: