Permanent Podcast: Real Talk About Private Equity and Buying, Selling, and Operating Small Businesses

Drafting the deal documents is expensive and time-consuming, but also can be a good indicator of progress in negotiations and the buyer's interest in continuing the process. In this episode, we step through the various documents necessary to close a deal and the players and factors that impact this crucial part of the dealmaking process. Discussion with Brent Beshore and Emily Holdman starts @ 1:57.

We all have our own negotiating style and most of them can be effective... if you stick to it. Whatever method you choose, you're best served knowing as much as you can about the buyer's motivations. In this episode, we give you a list of questions that will help you prepare to represent your needs and your company in the most effective way. Discussion with Brent Beshore and Emily Holdman starts @ 2:21.

What the heck is a BATNA? It's an industry acronym for Best Alternative To a Negotiated Agreement. In other words, what's your backup plan if negotiations with a prospective buyer fall through? In this episode, we talk about the importance of developing a solid BATNA and the role it plays in your conversations with buyers. Discussion with Brent Beshore and Emily Holdman starts @ 1:15.

All buyers have one thing in common: they expect a return on their investment. So what is the best way to market your company to buyers knowing they won't invest if they don't see growth potential? This episode hits on some important do's and don'ts as you present your business to prospective buyers. Discussion with Brent Beshore and Emily Holdman starts @ 2:05.

Prospective buyers will express their valuation of your company in different ways. While some will give you a set valuation number, others may use a multiple of earnings or an even more complex formula to be calculated at a predetermined time before close. In this episode, we examine the pros and cons of each method and important considerations as a seller as you contemplate an offer. Discussion with Brent Beshore and Emily Holdman starts @ 2:10.

As a seller, it can be easy to fixate on the valuation and cash at close numbers, especially when they are some of the largest you've seen in your lifetime. But the structure and terms of the deal are equally important. In this episode, we explore how to work with your potential buyer to make sure the structure of your deal is a reflection of your needs and expectations. Discussion with Brent Beshore and Emily Holdman starts @ 3:02.

Buyers commonly make the first move in a transaction. As a seller, this often catches us off guard (in a good or bad way). In this episode, we discuss how to digest an initial offer and the importance of communicating our expectations clearly and transparently. Discussion with Brent Beshore and Emily Holdman starts @ 1:34.

What will your role look like post-close? Do you plan to exit immediately or stay on indefinitely? And how do you want to be compensated in this next phase of your business? In this episode, we examine the different employment structures available and their potential impact on you, your personal finances, and your company. Discussion with Brent Beshore and Emily Holdman starts @ 1:50.

Many company owners own real estate associated with their business in order to expand their returns. As part of a potential transaction, buyers will be interested in the relationship between the real estate and the company and it is likely that real estate will be part of the deal terms in some form. In this episode, we step through the terminology and calculations used around real estate in transactions and the conversations you should be prepared to have with potential buyers as you negotiate a deal. Discussion with Brent Beshore and Emily Holdman starts @ 2:36.

Reps and warranties. Indemnification. Caps and baskets. Are you still awake? In this episode, we break down the legalese into digestible concepts and walk through how this section of a contract can be used to protect yourself and communicate critical information to a potential buyer. Discussion with Brent Beshore and Emily Holdman starts @ 2:34.