Curated articles, guides, and insights selected by Katz School of Business at the University of Pittsburgh.
Before selling to a third party: 1. Organize records for due diligence 2. Clean up financials 3. Resolve open issues/risks 4. Systematize operations to reduce owner dependency 5. Develop recurring revenue streams and growth potential 6. Build relationships with advisors like M&A lawyers and accountants.
Selling to a strategic buyer risks exposing sensitive business information like operations, pricing, and supplier relationships despite NDAs. There are higher chances of mismanaged expectations as they merge practices. Even if a deal falls through, they gain inside knowledge that can't be undone, potentially misusing it against the seller.