PODCAST: BUYSIDE ADVISOR V. SELLSIDE ADVISOR - WORTH YOUR TIME
Link to podcast: https://guardianduediligence.com/blog/intentional-growth-podcast-buying-selling-companies
Why you may want to listen: I was recently interviewed for the Intentional Growth podcast - and the content is super helpful for searchers. I am a buyside diligence provider and the podcast host, Ryan, is a sell side investment banker. We laughed a lot but we even had a small battle because he represents sellers and I represent buyers.
In this episode, I talk about strategy when competing in the barbaric sport of buying and selling businesses. You'll learn about what influences different investors’ decisions, what you should look for in deal terms, and how to expertly share the risk during negotiations. This episode is an absolute must for any business owner looking for funding any acquisition entrepreneur or ETA professional on the path to buying businesses.
Here are thing’s you’ll learn in this podcast:
- How buyers think about the risk of a company.
- The crucial role trust plays in closing a deal.
- The difference between a buyer-centric structure and a deal-centric structure.
- What happens after an LOI (letter of intent).
- Why being light and humble about predicting future cash flow can be a good thing.
- How buyers assess a seller’s determination to closing the deal.
- The biggest ‘gotchas’ sellers should look out for.
- How buyers handle risk through price and terms.
- The difference between deal breakers and surprises.
- Why Elliott calls the purchase price the ‘country club’ number and how you can overcome it.
- The three different types of concentrations to be aware of (vendor, employee and customer) that can reduce the value of a company.
- How working capital plays into closing the deal.
- The benefits of sharing risk with the person across the table, rather than making them your enemy.