Quick Answers: Post-Closing Obligations in M&A What are post-closing obligations in a business sale? Post-closing obligations are the responsibilities and financial exposures that continue after ownership transfers. They may include transition support, consulting or employment terms, earn-outs,
Selling a Business for Maximum Value Is a Process Direct answer: Selling a business for maximum value requires a managed process, not simply a listing. The owner must establish defensible earnings, explain the opportunity and its risks,
Quick Answers: Contractual Transferability in M&A What is contractual transferability? Contractual transferability refers to whether a customer agreement, vendor contract, lease, license, or other business arrangement can continue after ownership changes. Some agreements transfer automatically, while others
Quick Answers: Key-Person Risk in M&A What is key-person risk? Key-person risk exists when a business relies heavily on one individual, often the owner, to manage customer relationships, make operational decisions, or oversee critical functions. Does every
Quick Answers About Customer Concentration What does customer concentration mean in a business sale? Customer concentration means that one customer, or a small group of customers, contributes a meaningful share of the company’s revenue or profit. There
Quick Answers: Transaction Fatigue in M&A What is transaction fatigue? Transaction fatigue is the mental and operational strain that business owners experience during a prolonged sale process. It often occurs while balancing due diligence requests with the
Quick Answers: M&A Re-Trades What is a re-trade in M&A? A re-trade occurs when a buyer attempts to renegotiate price or deal terms after signing a Letter of Intent, typically because new information is discovered during due
Quick Answers: Working Capital Pegs in M&A What is a working capital peg? A working capital peg is the agreed-upon amount of working capital a seller must leave in the business at closing so the company can
Quick Answers: Confidential Information Memorandums (CIMs) What is a Confidential Information Memorandum (CIM)? A Confidential Information Memorandum (CIM) is a detailed document that introduces qualified buyers to your business after they have signed a Non-Disclosure Agreement. It
Quick Answers: Business Transferability in M&A What makes a business transferable?A transferable business can continue operating successfully without the founder’s daily involvement. Buyers look for stable systems, leadership depth, and operational continuity. Why does owner dependency reduce
