Insights from SXSW 2022

Written By Mike Simpson

We met some great new prospective clients and referral partners at SXSW22. And came with a renewed insight for founders in process of a sale or capital event for their company - not every buyer move is invasive or accusatory. Don't blow a great deal by reacting to unfamiliar territory and lean heavily on your advisors.

One of our other takeaways from @SXSW is that small, committed groups of people and organizations make all the difference in social change, technology, entertainment, business, and more broadly in the World. If you're a founder and a much larger acquirer is using high-priced and arrogant advisors to steamroll you from LOI through diligence, remember that greatly rarely comes from large organizations - know your value and lean on your team to get full value and protect your legacy.

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6 Secrets to Selling Your Business

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What the Silver Tsunami Means for Founders
Selling Your Business, Exit planning, Mergers & Acquisitions
What the Silver Tsunami Means for Founders
Selling Your Business, Exit planning, Mergers & Acquisitions

The silver tsunami isn’t just about retirement. It’s about millions of business owners preparing to sell their companies over the next decade. Here’s why founders should start planning years before they want to exit.

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Selling Your Business, Exit planning, Mergers & Acquisitions
The Net Working Capital Peg for Founders
Selling Your Business, Private Equity, Exit planning, Mergers & Acquisitions, taxes
The Net Working Capital Peg for Founders
Selling Your Business, Private Equity, Exit planning, Mergers & Acquisitions, taxes

Many business owners focus on the purchase price but overlook the deal terms that can impact what they actually take home. Here’s why understanding the net working capital peg before signing a letter of intent matters.

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Selling Your Business, Private Equity, Exit planning, Mergers & Acquisitions, taxes
Is Your Business a Qualified Small Business? The Section 1202 Tax Windfall
Selling Your Business, Private Equity, Selling Shares, Exit planning, Mergers & Acquisitions, taxes
Is Your Business a Qualified Small Business? The Section 1202 Tax Windfall
Selling Your Business, Private Equity, Selling Shares, Exit planning, Mergers & Acquisitions, taxes

Taxes can dramatically change what founders actually keep after selling a business. In this video, Kirk Michie introduces Section 1202, also known as the Qualified Small Business Stock (QSBS) exemption, and explains why founders should understand these rules long before going to market.

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Selling Your Business, Private Equity, Selling Shares, Exit planning, Mergers & Acquisitions, taxes
RWI vs. Escrow: How to Keep More Cash at Closing Without the Risk
Selling Your Business, Private Equity, Selling Shares, Exit planning, Mergers & Acquisitions
RWI vs. Escrow: How to Keep More Cash at Closing Without the Risk
Selling Your Business, Private Equity, Selling Shares, Exit planning, Mergers & Acquisitions

Many founders are surprised to learn that part of their sale proceeds may be tied up after closing. In this video, Kirk Michie explains how Rep & Warranty Insurance can sometimes reduce escrow requirements and help sellers keep more cash upfront.

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Selling Your Business, Private Equity, Selling Shares, Exit planning, Mergers & Acquisitions
The TSA Checklist: Defining Your Post-Sale Role Before You Sign
Selling Your Business, Private Equity, Selling Shares, Exit planning, Mergers & Acquisitions
The TSA Checklist: Defining Your Post-Sale Role Before You Sign
Selling Your Business, Private Equity, Selling Shares, Exit planning, Mergers & Acquisitions

Many founders focus on valuation and overlook what happens after closing. A transition services agreement can quietly shape your role, responsibilities, and time commitment long after the deal is signed.

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Selling Your Business, Private Equity, Selling Shares, Exit planning, Mergers & Acquisitions
Platform vs. Add-On Acquisitions: How Private Equity Decides Your Valuation Multiple
Selling Your Business, Private Equity, Selling Shares, Exit planning, Mergers & Acquisitions
Platform vs. Add-On Acquisitions: How Private Equity Decides Your Valuation Multiple
Selling Your Business, Private Equity, Selling Shares, Exit planning, Mergers & Acquisitions

Many founders hear terms like “platform company” or “tuck-in acquisition” during a sale process without understanding what they actually mean. In this video, Kirk Michie explains how private equity firms categorize businesses and why those labels can directly affect valuation multiples.

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Selling Your Business, Private Equity, Selling Shares, Exit planning, Mergers & Acquisitions
More Insights from SXSW
Candor Advisors
Mike Simpson https://variant.media
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