What to expect when expecting… a transaction!

What to expect when expecting… a transaction!

Shoot The Moon
Shoot The Moon
What to expect when expecting... a transaction!

Keeping with the theme of providing guidance throughout a process, we felt it would make the most sense to talk you through the emotions that will come with a transaction. During this podcast we will discuss what to expect; before, during and after a transaction.

Getting to the emotional state whereby you are ready to sell your business is a rollercoaster of a journey, filled with ups and downs and at times filled with doubts and fear.

Having a trusted advisor guide you through the options surrounding a potential exit or merger of your business helps ensure clarity and proper understanding of the pros and cons of each option.

Let’s dive in…



When we begin working with a client our first focus is to establish a clear understanding of the intended outcomes a seller (or buyer) is looking to achieve. Through a detailed process we are able to establish metrics and milestones that would be required to achieve such outcomes – we will walk through the valuations we are seeing in both existing and adjacent categories in both like and opposing markets/audiences. Second, is to determine what financial results are going to need to be met to achieve the valuation the parties are seeking.  Often we will leverage our SVP model to help a client achieve required metrics both in growth and earnings. This will enable the seller to either buckle down and get to the number or reduce expectations and proceed to market with a lower valuation and alternative suitor profile.



Usually, once we get to the phase of marketing the company for sale (or start the hunt to find the ideal asset) we have a solid foundation for what the process will look like and who will be invited to participate.  This stage can come with some personal baggage when existing owners begin carving out who they are not willing to consider as a suitor.  These discounted suitors are usually competitors or operators that have a track record of executing less than admirable transactions. At RRCG we help clients avoid the financial creepers, tire kickers and those that are not likely to be able to close. That said sometimes an exit into that evil competitor can yield the most reward.  Competitive buyers are going to see higher value in a transaction and we should consider them in most cases as viable options.  Many of the ongoing concerns that we face when bridging the dialog between buyers and sellers are sorted out and agreed to in the definitive agreements which will provide security to the sellers and their employees post combination.



Typically we like to think that if we do our job before and during the process we avoid unplanned emotion following the close.  That said, things are not always perfect and the parties need to work collaboratively to resolve gaps in expectations as well as ensuring continuity in communication to the employees, customers, and the industry. When working with RRCG you can be assured that proper due diligence will be conducted, that all representations and warranties are clearly understood and that the joint business plan is firmly established and agreed to by all parties.  This will ensure that the focus of those exiting the business or benefiting from liquidity will be positive and full of personal satisfaction.


Please keep us in mind when navigating the complex world of M&A.


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