Do you have the Resources to close a Transaction?

Do you have the Resources to close a Transaction?

Shoot the Moon
Shoot the Moon
Do you have the Resources to close a Transaction?
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Here are a few things to consider when understanding the buyer’s motives, economics and resources:

  • Why are they valuing your business as they are?
  • Does the buyer’s board of directors share the passion and commitment of a successful combination
  • What is the currency and who is funding it?
  • Operating capital
  • Capital formation
  • Debt
  • Equity (can the cap table afford it)
  • Lender details and expectations
  • If outside money is being used, have you met with the stakeholder to understand their willingness to fund the deal and what the ROI is for them?
  • Is the cash in hand (can you see it on the balance sheet)?
  • Why work with an M&A advisor? Best interests, can be the bad guy…

Summary:

  • Proof of funds takes many shapes and sizes
  • Seller needs assurances of the resources
  • Work with an advisor like Revenue Rocket

Listen to Shoot the Moon on Apple Podcasts or Spotify.

 



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