Key Considerations when Selling your Company

By Richard Harroch, David Lipkin and Richard Smith.

Mergers and acquisitions involving privately held companies entail a number of key legal, business, HR, intellectual property and financial issues. To successfully navigate a sale of your company, it is helpful to understand the dynamics and issues that frequently arise:

  1. Valuation is negotiable
  2. Deals can take a long time to market, negotiate and close
  3. Sellers do need to anticipate the significant due diligence the buyer will undertake
  4. Seller’s financial statements and projections will be thoroughly vetted by the buyer
  5. Multiple bidders will help the seller get the best deal
  6. You need a great lawyer and M&A legal team
  7. Consider hiring an investment banker
  8. Intellectual property issues will be important
  9. Don’t get trapped at the letter of intent stage
  10. The definitive purchase agreement is extremely important
  11. Employee and benefits issues will be sensitive and important
  12. Understand the negotiation dynamics

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