{"id":560573,"date":"2019-05-29T03:02:58","date_gmt":"2019-05-29T07:02:58","guid":{"rendered":"https:\/\/vrbbd.wpengine.com\/vrbbgreenbay\/5-ma-myths-and-how-to-deal-with-them\/"},"modified":"2022-01-31T12:42:42","modified_gmt":"2022-01-31T17:42:42","slug":"5-ma-myths-and-how-to-deal-with-them","status":"publish","type":"post","link":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/5-ma-myths-and-how-to-deal-with-them\/","title":{"rendered":"5 M&A Myths and How to Deal with Them"},"content":{"rendered":"
\"\"<\/p>\n

Where your money is concerned, myths can do damage. \u00a0A recent Divestopedia article from Tammie Miller entitled, <\/span>Crazy M&A Myths You Need to Stop Believing Now<\/span><\/a>, Miller explores 5 big M&A myths that can get you in trouble. \u00a0Miller points out that many of these myths are believed by CEOs, but that they have zero basis in reality.<\/span><\/p>\n

Myth 1<\/strong><\/p>\n

The first major myth Miller explores is the idea that the \u201cnegotiating is over once you sign the LOI.\u201d \u00a0The letter of intention is, of course, important. However, this is by no means the end of the negotiations and it is potentially dangerous to think otherwise. \u00a0The negotiations are not concluded until there is a purchasing agreement in place. As Miller points out, there is a great deal that can go wrong during the due diligence process. \u00a0For this reason, it is important to not see the LOI as the \u201cend of the road.\u201d<\/span><\/p>\n

Myth 2<\/strong><\/p>\n

Another myth that Miller wants you to be aware of is that you don\u2019t have to take a company\u2019s debt as part of the purchase price. \u00a0Many business brokers, such as Miller, recommend that buyers don\u2019t take seller paper.<\/span><\/p>\n

Myth 3<\/strong><\/p>\n

A third myth that Miller explorers is a particularly dangerous one. \u00a0The idea that everyone who makes an offer has the money to follow through is, unfortunately, simply not true. \u00a0Oftentimes, people will make offers without securing the money to actually buy the business.\u00a0 No doubt, this wastes everyone\u2019s time. \u00a0As the business owner, it can derail your progress.\u00a0 If you are not careful, it could actually prevent you from finding a qualified buyer.<\/span><\/p>\n

Myth 4<\/strong><\/p>\n

Another myth is built around the notion that sellers don\u2019t need a deal team in order to sell their business. \u00a0Again, this is another myth that has no real foundation in reality.\u00a0 While it may be possible to sell your business without the assistance of an experienced M&A attorney or business broker, the odds are excellent that doing so will come at a price. \u00a0According to Miller, those working with an investment banker or business broker can expect, on average, 20% more transaction value! <\/span><\/p>\n

Additionally, there are other dangers in not having a deal team in place. \u00a0A business broker can handle many of the time-consuming aspects of selling a business, so that you can keep running your business. \u00a0It is not uncommon for business owners to get stretched too thin while trying to both run and sell a business and this can ultimately harm its value.<\/span><\/p>\n

Myth 5<\/strong><\/p>\n

Miller\u2019s final myth to consider is that you must sell your entire business. \u00a0It is true that most buyers will want to buy 100% of a business, but a minority ownership position is still an option. \u00a0There are many reasons to consider selling a minority stake, so don\u2019t assume that selling your business is an \u201call or nothing\u201d affair.<\/span><\/p>\n

Ultimately, Miller lays out an exceptional case for the importance of working with business brokers when selling or buying a business. \u00a0Business brokers can help you avoid myths.\u00a0 In the end, they know the lay of the land.<\/span><\/p>\n

Copyright: Business Brokerage Press, Inc.<\/a><\/p>\n

viczast\/BigStock.com<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Where your money is concerned, myths can do damage. \u00a0A recent Divestopedia article from Tammie Miller entitled, Crazy M&A Myths You Need to Stop Believing Now, Miller explores 5 big M&A myths that can get you in trouble. \u00a0Miller points out that many of these myths are believed by CEOs, but that they have zero […]<\/p>\n","protected":false},"author":2,"featured_media":560575,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[4,5,6,7],"tags":[],"class_list":["post-560573","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","category-buyer-articles","category-buyer-faq","category-buying-a-business"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/posts\/560573","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/comments?post=560573"}],"version-history":[{"count":0,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/posts\/560573\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/media\/560575"}],"wp:attachment":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/media?parent=560573"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/categories?post=560573"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/tags?post=560573"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}