Page 13 - TACC 2025 Program

Todd Giustiniano
Partner

4. Unrealistic seller expectations. the business can lead to unrealistic expectations
Small and midmarket M&A deals are typically and an unwillingness to budge, even in the face of
lopsided. Whereas buyers generally are familiar changing economic factors or issues discovered
with the M&A process, with multiple deals under during due diligence. If you refuse to adjust your
their belt, the transaction often represents a pricing expectations to reflect legitimate concerns,
once-in-a-lifetime event for sellers. Lack of lower valuations, or shifting market conditions,
experience coupled with emotional involvement in don’t be surprised if the buyer walks.

Boost the Odds of a Successful Transaction

Preparing yourself and your business properly before going to market is crucial.

Before proceeding down the M&A path, take a beat to consider whether this is what you and your family
want. Is your spouse on board with your decision? What about other family members? Once you’re clear
about your objectives, start with your end in mind and assess all the alternatives. Are you prepared to walk
away from the business, or do you want to retain some involvement? Thinking through your options and
preferences will allow you to fully commit when you find the right deal.
Once you’ve decided on the M&A path, performing your own sell-side diligence can make the company
highly attractive to buyers, boost the sales price, and facilitate a quick sale. Your preparations should include
a careful review of books and records to ensure everything is accurate, fully documented, and up to date.
Also, consider obtaining a business valuation or a quality of earnings report (or both) to help potential buyers
accurately gauge the value of the business.

Protect Yourself and Your Business

Engaging M&A advisors to help you prepare is a crucial step that many small business owners overlook.
Experienced M&A professionals can effectively shepherd your business through each stage. Their vast
experience means they can recognize potential snags, offer solutions, and help keep the deal on track.

Your investment in experienced M&A guidance also means you have a team who knows the ropes and
always acts in your best interests, helping you anticipate and address buyers’ questions and concerns before
you even list the business. Just as important, professional M&A advisors in your corner can level the playing
field so that more savvy buyers can’t take advantage of your relative lack of M&A experience.

Finally, it’s important to remember that business transactions are all about relationships. Maintaining a
trusting relationship is critical, especially if you plan to stay with the business for a year or two after the sale.
Be clear about any potential risks or unaddressed issues a buyer should know about. Remember, you can
resolve most concerns as long as you’re up-front about them.