Importance of Advisors in M&A Transactions

You need to hire an M&A attorney for your transaction. Commercial transactions are often complicated. Because of the number of aspects that go into buying a business, even "simple, straightforward" deals can seem complex. There is just a lot that goes into properly documenting a transaction. In addition to being complex, these transactions usually involve substantial sums of money trading hands. This means there is a lot of opportunity for mistakes, and the repercussions of these mistakes may be significant. Why would you cut corners on hiring legal representation with this complexity and the dollars involved? I have seen parties who feel they can do their own legal diligence and review of documents. Many people also hire a lawyer with little experience in mergers and acquisitions, believing it is cheaper than hiring an expert. Interestingly, the buyers and sellers who try to close deals on the cheap are usually not experienced dealmakers. Investors, investment firms, and serial entrepreneurs will typically be represented by a lawyer who specializes in M&A. So, the buyers and sellers who have the most experience with commercial transactions know the value an M&A attorney can add to a deal. Experienced legal counsel will know how to conduct due diligence properly, ensure comprehensive and properly drafted contracts, assist with deal structuring, navigate regulatory and lending requirements, direct the deal process, and much more. An experienced M&A attorney does a lot more than update the names and purchase price on a form purchase agreement. When you are dealing with millions, you want to know that you have someone on your side who can ensure the transaction works as expected and knows how to navigate issues as they arise. The costs saved by not having counsel are often nominal compared to the size of the transaction. It is not uncommon for legal costs to be less than 1% of the purchase price. Considering the value an experienced M&A lawyer brings to the transaction, why wouldn't you think it's worth it? There are so many ways for a deal to go poorly. There are an infinite number of things that can be overlooked, misunderstood, or disputed over. An experienced M&A lawyer knows the process and how to ensure the transaction goes as planned.

Thinking about acquiring or selling a company? Bring in a CFO (or fractional CFO) 𝘦𝘢𝘳𝘭𝘺. Many founders wait too long to hire a CFO to save money only to realize, too late, that it costs them a lot more in the long run. The right CFO, whether full-time or fractional, can be a big help throughout the entire M&A process, bringing a point of view that makes life easier (and more lucrative) for you. Here’s how a CFO adds value in M&A: • 𝗔 𝘀𝗲𝗰𝗼𝗻𝗱 𝘀𝗲𝘁 𝗼𝗳 𝗲𝘅𝗽𝗲𝗿𝘁 𝗲𝘆𝗲𝘀 – A CFO looks at a deal with the company’s best interest in mind. They can find weaknesses in deal structures and help you avoid expensive surprises down the road. (I could tell you stories!) • 𝗗𝘂𝗲 𝗱𝗶𝗹𝗶𝗴𝗲𝗻𝗰𝗲 𝗹𝗲𝗮𝗱𝗲𝗿𝘀𝗵𝗶𝗽 – They manage the flood of financial requests, ensuring your numbers are solid, clear, and presented in a way that strengthens your position. • 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗮𝗱𝘃𝗶𝘀𝗼𝗿 – From modeling different deal scenarios to negotiating better terms, a CFO helps you make informed decisions that maximize value. • 𝗗𝗲𝗮𝗹 𝗽𝗿𝗼𝗯𝗹𝗲𝗺-𝘀𝗼𝗹𝘃𝗲𝗿 – When negotiations hit roadblocks (as they always do), a CFO’s experience with complex transactions keeps the deal moving forward. The best time to bring in a CFO isn’t when you’re scrambling to fix problems - it’s at the very start, when they can help shape the deal itself. 𝗠𝘆 𝗳𝗲𝗹𝗹𝗼𝘄 𝗖𝗙𝗢𝘀, 𝗵𝗮𝘃𝗲 𝘆𝗼𝘂 𝗲𝘃𝗲𝗿 𝘀𝘁𝗲𝗽𝗽𝗲𝗱 𝗶𝗻𝘁𝗼 𝗮 𝗱𝗲𝗮𝗹 𝗲𝗮𝗿𝗹𝘆 𝗮𝗻𝗱 𝗺𝗮𝗱𝗲 𝗮 𝗯𝗶𝗴 𝗶𝗺𝗽𝗮𝗰𝘁 - 𝗼𝗿 𝗰𝗼𝗺𝗲 𝗶𝗻 𝘁𝗼𝗼 𝗹𝗮𝘁𝗲 𝗮𝗻𝗱 𝗵𝗮𝗱 𝘁𝗼 𝗰𝗹𝗲𝗮𝗻 𝘂𝗽 𝗮 𝗺𝗲𝘀𝘀? Share your stories in the comments! 𝗙𝗼𝘂𝗻𝗱𝗲𝗿𝘀 & 𝗖𝗘𝗢𝘀, if M&A is on your radar and you’re wondering when to bring in a CFO, let’s talk. I’m happy to help!

In too many M&A deals, selling founders hire an inexperienced financial advisor they like, or who sounds confident, or who says they “have buyers.” Lots of these sellers then spend the rest of the process cleaning up the mess. Why? Because not all business brokers or M&A advisors are created equal. I’ve seen it firsthand multiple times. People with no real transaction experience but have now decided to be a business broker or some other type of M&A advisor. Suddenly they’re masquerading around trying to lead business owners through seven or eight figure exits like they’ve done this a hundred times. Except they haven’t. And it shows. —They don’t understand working capital. —They don’t understand how to value rollover equity. —They lack basic contractual understanding. —They have no deal strategy or mechanical acumen. —They oversimplify everything and often are nowhere to be found when it inevitably gets hard. But they do know how to tie you up in multi-six figure fee agreements you can’t escape. Depending on the data source, 70–90% of M&A transactions fail to deliver the expected value. There are many reasons why. But one thing founders can control is who’s advising them. So take your time. Do your research. Talk to attorneys, accountants, real dealmakers with actual M&A experience. Ask them who they’d trust with their own sale. Because this isn’t a minor vendor decision. At Linden Law Partners, we’ve worked with some of the best brokers and investment bankers in the business. If you ever need a warm intro to someone legit (depending on the size, industry, etc.), happy to help. Because the who is just as important as the how. #founders #deals #sellyourbusiness #advisors

The Role of Advisors in a Successful Business Sale Selling a business is one of the biggest decisions you’ll make, and it’s not something you should do alone. Having the right team of advisors can mean the difference between a smooth, successful sale and a stressful, disappointing experience. A good advisor acts as your guide through the process, helping you avoid common pitfalls and making sure you get the best deal possible. Business brokers, accountants, and attorneys each play a key role in preparing your business for sale, finding buyers, and negotiating terms. Brokers are your connection to the market. They know how to position your business to attract serious buyers and can market it to the right audience. More importantly, they handle the time-consuming tasks, like screening buyers, so you can stay focused on running your business. Accountants are essential for presenting clean, accurate financials. Buyers want to know they’re getting a business with solid numbers, and accountants help ensure there are no surprises. They can also advise on tax implications, helping you keep more of your hard-earned money after the sale. Attorneys protect your interests. From drafting contracts to reviewing terms, they make sure everything is legally sound. Selling a business is a complex transaction, and having an attorney ensures you don’t miss critical details that could cost you later. Together, these advisors form a team that helps you plan, prepare, and execute the sale. They reduce stress, save time, and maximize the value of your business. Bonus points if you can find a team of advisors who all "row in the same direction." Advisors from different disciplines who are all CEPA certified can accomplish just this! Without advisors, you risk underpricing your business, overlooking legal risks, or losing out on favorable tax strategies. Selling is too important to leave to guesswork. If you’re considering selling, now is the time to start building your team. Reach out to experts who can guide you through the process and set you up for success. The right advisors don’t just help you sell your business—they help you achieve your goals.

Could AI replace your M&A advisor? Probably not. At least not entirely. Surprised? Many signs point to AI making consultative roles obsolete. Around 58% of B2B businesses employ chatbots today, including most of the big tech companies. By 2025, as much as 95% of customer support could be automated. But it doesn’t stop there… Benchmark Capital is betting on you hiring digital salespeople to source and manage pipeline. Perhaps most surprisingly, 65% of people prefer automation over human agents. With AI getting better at reading emotions, surely it won’t be long until it comes for your M&A advisor? Well, yes and no. Consider the stakes in an acquisition: - Life-changing money – potentially millions of dollars - The future of your business and its employees - Your legacy and reputation in the startup community Your buyer also has a lot on the line. Think of the money they’re investing. The time and effort. Emotions are going to run high. You may lose sleep. You may lose your cool. And that’s when you need an expert’s help, someone with empathy and understanding. - Someone who’ll jump on a late-night call with a buyer to save your deal… - Someone who’ll lend an ear when you want to blow off some steam…  - Someone who’ll talk you down from quitting because you’ve had a bad day… Emotional intelligence is needed during an acquisition. Not artificial intelligence. Unfortunately, you can’t program the human experience. It doesn’t parse well. The more we create AI in our likeness, the less useful it becomes. It amplifies our biases and can even turn against the people it works for. But as a tool for automating admin, nothing beats it. AI might not replace your M&A advisor, but it will free up more time for maximizing your exit. If you’d like an “organic” take on your acquisition, get in touch. We’re all human over here at acquire.com. For now.

Don't get eaten alive!! Selling your business without professional help? You’re leaving ca$h on the table. I learned this the hard way when I sold my first company. I was naive and thought I could handle it myself. Big mistake. I left so much money on the table that it still hurts to think about it today. If you want to maximize the value of your blood, sweat and tears, you need to hire either an M&A advisor or business broker. Here are the top 3 reasons why: First, you’ll get an accurate valuation of what your business is really worth. Experienced advisors know how to analyze financials, evaluate market trends and benchmark against other deals. This prevents you from underselling yourself or having unrealistic expectations and wasting time.... Second, advisors help you improve the business before the sale. They’ll spot areas that need polish to attract buyers and increase offers. This can include streamlining operations, resolving legal issues or boosting profitability. Third, advisors handle the complex legal and financial negotiating aspects of the deal. From contracts to negotiations to regulatory issues - they’ve done it many times before. Their expertise reduces costly mistakes. They also have access to qualified buyers you’d never find yourself. And they know how to maintain confidentiality during the process which is crucial. Selling your business is a complex, high-stakes endeavor. Doing it alone puts you at a huge disadvantage. Hiring an experienced M&A or business broker is like having a world-class dealmaker on your team. Don’t leave big bucks on the table and jeopardize your business in the process. Don't get eaten alive. Agree❓ _______________________ Let's connect! Video Credits: @SmartArtGlobe

𝗜𝗻 𝗠&𝗔, 𝗶𝘁'𝘀 𝘁𝗵𝗲 𝗱𝗲𝘁𝗮𝗶𝗹𝘀 𝘁𝗵𝗮𝘁 𝗱𝗿𝗶𝘃𝗲 𝗿𝗲𝗮𝗹 𝘃𝗮𝗹𝘂𝗲. An attractive valuation might be exciting, but what really matters is what the seller walks away with. That number is shaped — sometimes dramatically — by the structure behind the deal. Earnouts, working capital adjustments, rollover equity, tax strategy…These aren’t just technicalities — they’re value levers. And if they’re not carefully negotiated and tailored to the seller’s objectives, they can erode millions in value or create friction post-close. Great advisors don’t just connect sellers with buyers. They anticipate issues before they arise. They dig into the fine print. They ask hard questions: ❖ Are the earnout terms realistic — and enforceable? ❖ Is the working capital peg benchmarked appropriately? ❖ Will the rollover equity actually have a path to liquidity and upside? ❖ Are we optimizing tax treatment based on deal structure and entity type? This is where sellers either maximize or miss out on the full value of their business. 𝗧𝗵𝗲 𝗿𝗶𝗴𝗵𝘁 𝘀𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲. 𝗧𝗵𝗲 𝗿𝗶𝗴𝗵𝘁 𝗽𝗿𝗲𝗽𝗮𝗿𝗮𝘁𝗶𝗼𝗻. 𝗧𝗵𝗲 𝗿𝗶𝗴𝗵𝘁 𝗻𝗲𝗴𝗼𝘁𝗶𝗮𝗴𝗶𝗼𝗻. 𝗧𝗵𝗲 𝗿𝗶𝗴𝗵𝘁 𝗮𝗱𝘃𝗶𝘀𝗼𝗿𝘀. That’s how you turn a good offer into a great result. And that’s where your team’s M&A experience makes all the difference. #mergersandacquisitions #Investmentbanking