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Deal Terms You Need To Know Before Selling Your Company
Deal Terms You Need To Know Before Selling Your Company
ratings:
Length:
37 minutes
Released:
Jun 25, 2023
Format:
Podcast episode
Description
In this episode of The Lazy CEO Podcast, host Jim Schleckser discusses the importance of deal terms in business transactions. He introduces the concept of "your price, my terms," emphasizing that the terms of a deal can outweigh the price in determining its quality. Jim compares two theoretical deals to illustrate this point: a $20 million deal paid over 10 years with potential deductions versus a $16 million cash deal with no backside risk. He highlights the significance of closure risk, timing, level of due diligence, time value of money, escrows, and representation and warranties in deal negotiations. Jim also discusses the impact of the buyer's fit and treatment of employees, as well as the distinction between asset sales and stock sales. He explains that the choice between the two can have significant tax implications and advises listeners to consult with their advisors to determine the most favorable option. Throughout the episode, Jim shares personal experiences and insights from his involvement in various deals. He concludes by emphasizing the importance of paying close attention to deal terms and seeking expert advice to ensure a successful transaction.
Released:
Jun 25, 2023
Format:
Podcast episode
Titles in the series (78)
From CEO to CEO Advisor: Jim Schleckser is the Chief Executive Officer of The CEO Project, a business advisory group for accomplished CEOs to help them solve their most challenging issues, resolve constraints, drive growth, and improve outcomes. With 30 years of leadership... by The Lazy CEO Podcast