May 2023
Beginner
368 pages
10h 23m
English
Content preview from Mergers & Acquisitions For Dummies, 2nd Edition
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Chapter 20
Ten Lurking Problems for Sellers
IN THIS CHAPTER
Highlighting areas that sellers often overlook
Making sure sellers are fully prepared for the sale process
Valuation is always the million-dollar question — well, it’s often the multimillion-dollar question. The stereotypical negotiation impasse has the seller asking for a high price and the buyer offering a low price, with each side digging in their heels and insisting that the other side capitulate to their demands. But that strategy rarely results in a closed deal.
In the spirit of getting deals done, in this chapter I provide a few ideas on ways buyers and sellers can settle valuation disagreements and move forward to the closing.
Let’s assume the company is performing well and is profitable and growing. Great! That’s a big part of the equation.
Quality of Earnings and Inventory
I always consider the quality of a company’s earnings and the status of its inventory as the twin focus of buyers. Business owners are wise to plan accordingly. When I say quality of earnings, I’m not referring to the report of the same name (see Chapter 7), but rather the condition of the profits of a company. The report helps quantify those earnings.
A buyer will pore through a seller’s general ledger, wanting to confirm that all inventory ...
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I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.Addison B.
I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.Amir M.
I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.