Tài liệu Make Millions and Make Change 9 docx

Make Millions and Make Change!

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Any information you want to disclose should be prepared in advance,

so you are not caught with your guard down. It is also a good idea to

know in advance what type of deal you might accept, if any.

If you do not want to sell your company for a fair market value, then

do not waste your time and money by working with people interested

in mergers and acquisitions. They will not pay more than what it is

worth, and you will not sell for less.

The most common, conservative model a buyer is likely to use to

estimate your target corporation’s current value is discounting your

estimated future cash flows back to what they would be worth today,

given their expected profit margins over time, taking in to account the

other opportunities for your assets and expected interest rates. That

will be used as a guidepost for their offer, which is likely to have many

interrelated parts, generally including some at risk components, like

stock options and “earn outs.”

There are many factors a buyer will consider to determine your

“estimated future cash flow,” which you must also consider for your

business “narrative” to the buyer to create the intended perception.

They will be interested in your longevity, intellectual property,

resumes and bios, customer lists and contracts, debts, service liabilities

and opportunities, leases, hard assets, non-competed and proprietary

invention agreements for staff, the sanctity of your “books,” and a

variety of other objective and subjective measurements in their “due

diligence” process.

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