Insights in Review - Top Tips from Kevin Henderson

To celebrate our upcoming Private Market Labs Insights episode with Karen Spencer coming next Tuesday at 3:00 CT, here are the top 6 insights from a recent episode, my interview with Kevin Henderson!

For additional insights like these, don't miss my conversation with Karen coming up!

#smb #mergersandacquisitions #community

Insight 1: Smooth deals are marked by open, transparent communication between all parties. When buyers and sellers work collaboratively to answer key questions and move an acquisition forward, a positive outcome is much more likely.

Insight 2: Bring a Private Equity Process, Not a Private Equity Attitude. By meticulously planning the deal and using checklists to track progress, you can streamline the process, minimize surprises, and enhance deal success rates.

Insight 3: Build Rapport and Leave Bargaining to Your Lawyers. Let your lawyers be the bad guys. This strategy not only preserves goodwill but is crucial for post-sale cooperation.

Insight 4: Focus on the real deal brakers. Issues like significant gaps in earnings or valuations pose the greatest risk to closing a deal, underscoring the importance of thorough financial review to prevent acquisition failures.

Insight 5: Indemnification clauses and reps and warranties are important but can be difficult to negotiate. Misunderstandings can cause problems.

Insight 6: Use a legal team that's familiar with the #smb space. SMB-focused lawyers have the experience to spot opportunities to secure favorable terms. Business owners may have non-traditional priorities in a negotiation, creating opportunities for win-win negotiations.