Management Buyout (MBO): How to Sell Your Business to Your Employees (2026)
Management Buyout (MBO): How to Sell Your Business to Your Employees (2026) Quick Answer A Management Buyout (MBO) is a transaction in which the existing management team, typically the senior operating leaders below the owner, purchases the business from the owner. Standard financing structures combine SBA 7(a) loans (up to $5M), seller financing (typically 20–40% […]
Selling Your Business to a Competitor Without Information Leaks: A Defensive Playbook (2026)
Selling Your Business to a Competitor Without Information Leaks: A Defensive Playbook (2026) Quick Answer Selling to a direct competitor offers the highest strategic-value premium of any buyer type but carries the highest information-leak risk. Effective protection combines tiered information release (broad data only early; sensitive data only late and only after specific milestones), enhanced […]
Due-Diligence Financial Documents Checklist for Sellers: What to Have Ready Before You List (2026)
Due-Diligence Financial Documents Checklist for Sellers: What to Have Ready Before You List (2026) Quick Answer Sellers entering a sale process should have ready: three full fiscal years of P&Ls, balance sheets, general-ledger detail, federal/state tax returns; trailing-twelve-month financials updated monthly; full AR aging and AP aging; complete customer contracts; vendor and supplier agreements; employee […]
What Is a Sim in M&A: Sell-Side Information Memorandum (SIM/CIM/IM):
What Is a Sim in M&A: The Sell-Side Information Memorandum (SIM/CIM/IM): What Goes In, What Stays Out (2026) Quick Answer The Information Memorandum (variously called the SIM, CIM, IM, or “book”) is the primary marketing document in a sell-side M&A process. A well-built IM is typically 30–50 pages and follows a standard structure: executive summary, […]
How to Handle Multiple LOI Offers: A Seller’s Framework for Competitive Bidding (2026)
How to Handle Multiple LOI Offers: A Seller’s Framework for Competitive Bidding (2026) Quick Answer When a sale process generates multiple LOI offers, the seller’s job shifts from “attract a buyer” to “extract maximum value from competition without breaking the relationships that have to survive diligence.” Two dominant approaches: simultaneous bidding (set a single submission […]
Counter-Offer to a Letter of Intent: How Sellers Negotiate LOIs Without Killing the Deal (2026)
Counter-Offer to a Letter of Intent: How Sellers Negotiate LOIs Without Killing the Deal (2026) Quick Answer An LOI counter-offer is the seller’s first formal response to a buyer’s Letter of Intent and it is the single most leverage-rich moment in a business sale. Most non-price terms (working capital peg, escrow size, indemnification caps, exclusivity […]
How to Respond to a Letter of Intent for Your Business: Timing, Counter-Offers, and Multiple-LOI Strategy
How to Respond to a Letter of Intent for Your Business: Timing, Counter-Offers, and Multiple-LOI Strategy Quick Answer When you receive a Letter of Intent (LOI) to buy your business, the right response process is: take 5-10 business days (never feel pressured to respond immediately), negotiate the most important terms first (price, deal structure, financing […]
Selling a Business When Your Partner Disagrees: Buy-Sell Triggers, Forced-Sale Mechanics, and Resolution Paths
Selling a Business When Your Partner Disagrees: Buy-Sell Triggers, Forced-Sale Mechanics, and Resolution Paths Quick Answer When one co-owner wants to sell and another doesn’t, the resolution depends almost entirely on what the buy-sell agreement (or operating agreement / shareholders’ agreement) says. Common mechanisms include: right of first refusal (a partner who wants to sell […]
Selling a Business with IRS Tax Debt: Liens, Payoffs, Installment Agreements, and Net Proceeds
Selling a Business with IRS Tax Debt: Liens, Payoffs, Installment Agreements, and Net Proceeds Quick Answer A business with IRS tax debt can be sold, but the IRS debt must be addressed at or before close — usually through payoff from sale proceeds. Federal tax liens attach to all business assets, take priority over most […]