Exit Choices

As an owner(s) of small/mid sized firm, there are basically 3 choices to exit:

1. Shut off the lights and liquidate = No value

2. Sell Internally =  Nice gesture, but employees can not like pay market value

3. Sell Externally to a Strategic Firm  or Private Equity = Highest Value

M&A Transactions are Complex.  

Buyers are sophisticated who can easily take advantage of a Seller who does Not have M&Aexperience.      

DDRC has expert level knowledge in pricing, working capital, buyer outreach and marketing, negotiations, deal structures, LOI negotiations, due diligence programs, SPA financial negotiations, and integration planning.

Your Accountant or Lawyer are important but Not M&A Advisors.                                                                   

DDRC will help ensure you don’t Leave Money On The Table.                                                 

  • Deal Structure- Entities, Assets, Shares, Merger: Sale Permit                                                           

  • Financial Statements Adjustments                                                                             

  • Normalized EBITDA and Market Multiple                                                                           

  • Normalized  Working Capital and Target Equity                                                                              

  • Post Closing-Working Capital Adjustments   

  • Post Closing-Account Receivables Adjustments                                                                               

  • Purchase Price Amount, Timing, and Holdbacks                                                                              

  • Earn-Out Structure, Calculations, and Monitoring                                                                            

  • Pre-Closing Dividend / Shareholder payments                                                                                  

  • Non-Compete / Non-Solicit provisions                                                                                  

DO Decrease Your Risk by risk mitigation terms                                          

  • Closing conditions and consents provisions                                                                           

  • Purchase Agrmt. Schedules                                                                            

  • Purchase Agrmt. Indemnity timing, limits, and caps                                                                         

  • Closing Financial Statement Guidelines                                                                                

  • 2-phase Exclusivity and timing provisions