Business Exits: How Do I Sell My Minority Interest in a Private Company?

Part Two

If you are a minority shareholder in a private company, there is no automatic right to make the majority shareholders buy you out when you want to sell.  Yes, there can be rights of first refusal in your company’s constitution or in your shareholders’ agreement (if you have one) where you are required to offer […]

Business Exits: Personal Reasons to Sell

Accountants and MBAs can tell you when external events dictate it is time to sell your business.  Sometimes, however, there are personal events that dictate a business exit. The trick is recognising that such events may put your business at risk and moving quickly to exit.  The fact is that once one or more of […]

Creating Value: The Three Stages of a Successful Roll Up Strategy

Charting the Course for Successful Acquisitions

Roll ups are a valid way of creating shareholder value. They proceed on the basis that the main company can acquire a number of smaller players in a fragmented industry and achieve cost savings as well as a better value proposition in a relatively short time span. A roll up strategy must be planned out […]

Creating Value: Roll Ups as a Strategy for Growth

The Four Pre-Conditions for a Successful Roll Up

When companies are looking for growth, roll ups might be the answer.  A “roll up” or “consolidation strategy” is when a company buys up other companies in the same market and merges them into one larger entity. The strategy is designed to strip out costs in the targets by consolidating the back office functions and […]

Problems with Memorandum of Understanding and Heads of Agreement

These days, business agents, investment banks, accountants and many clients have come to believe that Memoranda of Understandings and Heads of Agreement are an essential part of the transaction documents.  They are not. There are enough problems with using a Memorandum of Agreement (“MoU”) or a Heads of Agreement (“HoA”) to seriously wonder if they should […]

Capital Raising: How VCs and Professional Investors Add Value to Your Company – Part Two

Invariably entrepreneurs seek to raise “smart money” – money that comes from investors who can also  can provide advice, contacts and assistance.  Professional investors often have these smarts and they can arrange introductions to strategic allies, help deal with recalcitrant suppliers or even smooth over issues with regulatory authorities or government. Usually VCs, PE companies or professional investors have […]

Creating Value: Negotiation – Their Authority and Yours

You Want to be Speaking to the Organ Grinder, Not the Monkey

Have you ever negotiated to buy a new car only to have the salesman you are dealing with suddenly have to “take it to the manager” to have it approved?  Don’t get blindsided by this one in your corporate negotiations – you want to be speaking to the organ grinder, not the monkey. The “Authority Question” and […]

Creating Value: Negotiation and Your BATNA (Best Alternative to a Negotiated Agreement)

“In every negotiation it must be assumed – unless you are dealing with juveniles – that your opposite numbers will always table maximum positions first.  Equally important, it must be assumed – unless you are dealing with fools – that your opposite numbers have not disclosed their minimum positions in any manner.”  Thus spoke Gordon […]

Creating Value: Multiparty and Multiphase Negotiations

When thinking of negotiations, most people envisage two parties hammering out a deal.  Often however, there are more than two parties, more than two places and more than one time period. Some negotiators describe multiparty negotiations as being like herding cats.  When the negotiations become multiparty and multiphase, its like herding pigeons: just like herding […]

Creating Value: The Two Types of Negotiation

In creating value, raising capital or selling a business, the rubber hits the road when you sit down and negotiate a price.  The difficulty is that most people don’t negotiate for a living, whereas professional investors do. There is therefore a fundamental asymmetry in the negotiating position that can only be overcome by learning negotiation […]