Value vs. Currency When Selling a Business

hosted by: David Mariano, Director and head

of the firm’s Buy-Side advisory practice

Value vs. Currency When Selling a Business

When you’re in a sale transaction, there’s a big difference between the value of your business and the currency you receive. It is vital that you understand the full value of what your are getting so you don’t give anything away.

Our guest, Mark Filippell is back in the studio with David Mariano to discuss value versus currency. Understanding your deal and making sure it’s the best value for your business can be tricky. Today, Mark and David give you a rundown of what this all means and how to avoid some pitfalls.

Key questions in this episode:

* How often is cash not the only currency in the sale of a business?

* What are some of the “currencies” a business owner could expect to see when selling?

* What details need to be taken into consideration when the sale of a business includes notes?

* When should a seller factor in the creditworthiness of the buyer if notes are part of the deal?

* Are earnouts always more trouble than they are worth?

* How does a stock for stock exchange effect a seller’s tax bill?

* Should an owner have a structure in mind before embarking on a sale process?

* What are the differences between selling stock and selling assets in a business?

Key points in this episode:

* A $10,000 frog.

* The best value is usually a combination of things.

* Why the structure of notes can effect their value.

* How contingencies can get complicated and how to keep them simple (at 7:55).

* Learn a lesson from The Colonel (at 14:34).

* How the type of corporation you are selling effects the transaction.

* Why companies don’t just sell assets.

Resources mentioned in this podcast

* Click here for access to training and templates

* Mergers and Acquisitions Playbook, Lessons from the Middle-Market Trenches, by Mark A. Filippell

Listen to Fully Invested below: