If you're a founder who was hoping to sell in 2021, either to tap the M&A boom, or avoid higher capital gains taxes, or just because you're ready to be done, the bad news is you've probably missed the market. But there's a silver lining in waiting to 2022 and beyond!

If you're a founder heading toward a sale or other capital event, it might be time to look at whether family members and friends should be part of the business you present to buyers. Loyalty is important and commitments need to be honored, but be smart about the tradeoffs to maximize your outcome.

For founders contemplating a sale of their business, there are some crosswinds ahead, including the potential for higher taxes, geopolitical instability, and a tired bull market. Should you accelerate or hold off? We have thoughts...

If you're a founder selling or contemplating the sale of a manufacturing business, this information might save you $ millions and more importantly, save your deal. This is one pesky accounting term that should be defined (maybe even with attachments) in your LOI and Purchase Agreement.

When we get into the process of, or negotiations to sell our companies, we sometimes infer strategic significance from every email or phone call with our prospective buyer. Sometimes those one or two word answers, days without communication, or changes to tone or tenor are just them being human or being busy, and they have nothing to do with us and our companies.

If you're a founder on the way to selling your company, there's plenty of capital and a lot of great buyers out there right now. Don't waste precious time trying to make something work with the wrong buyer.

Strategic Buyers are Always Better, Right?

If you're a founder in process of selling your company, and due diligence feels like it's dragging on and on, and you've responded to all of the initial requests, there's a few ways to end the continued requests and get clarity about your buyer in the process.

If you're a founder and headed into Due Diligence with a strategic or financial buyer, watch out for overly complicated or lengthy questions or process...none of that helps you, and plenty of it is used to test or challenge you unfairly.

If you're a founder in the middle of a sale, capital raising process, or negotiation with partners or stakeholders, recognize that WAITING can often be the best active decision. It's not purely intuitive to know when to push and when to wait, so be sure to have at least one member of the deal team with lots of reps at the M&A Gym!!

If you're a founder of a successful company going through a capital event, prepare yourself for the likelihood you'll have at least one hiccup somewhere in the process. Almost every deal has one. They usually don't have to derail your transaction, but they're usually tricky to navigate. Make sure you have the right advisors to help.

If you're a founder and you've received a confusing or disappointing offer from a private equity firm, don't immediately reject it...there might be a workable deal if you follow the maxim; Sellers Price = Buyers Terms, and vice versa. There are tradeoffs that might get you to your WHY in selling your company.

Many Founders ask, should I sell to Private Equity? The answer, paradoxically, may have more to do with your goals than valuation…

Many founders make one or all of these 3 understandable and potentially disastrous mistakes when selling; 1) use advisors without M&A experience, 2) get distracted by the M&A process and let business results suffer, 3) let their employees know they're selling too soon. All well-intentioned, stem from loyalty, familiarity, instinct, or transparency, and each one may lead to disaster.

If you're a founder whose business has unique intellectual property (real secrets to design or process), then protecting your precious IP might need a extra layer in due diligence with a buyer. Consider putting a "Clean Team" protocol in place to keep your secrets safe.

Founders that are in YPO or Vistage, or one of these other wonderful support organizations that help you and your fellow founders and CEOs get together and discuss really tough issues and learnings and best practices.

We highly recommend getting input from your fellow founder/CEO peers! Then, seek the more experienced counsel of a transactional professional to improve your odds of a great outcome with your prospective buyer.

If you're a #founder and moving toward a sale, or even responding to an unsolicited offer, it makes sense to get your financials in order by using an advisor with significant experience in M&A. Missing this simple step is often VERY COSTLY!