Dave Kauppi is the editor of The Exit Strategist Newsletter and Managing Director MidMarket Capital Advisors, providing corporate finance and sell-side advisory services to entrepreneurs in information technology and other high tech businesses. Dave graduated from The Wharton School of Business, University of Pennsylvania with a BS in Economics /Finance. Our ideal client is a business seller who wants more than an EBITDA valuation Multiple.
Monday, March 19, 2018
BizCast Video Announcing our New Approach to the Unsolicited Offer
We are really excited that BizCast interviewed us about our new product offering for Business Owners that have been approached by a buyer with an unsolicited offer. Please check out the brief interview.
BizCast Interview with MidMarket Capital President Dave Kauppi
Dave Kauppi is a Merger and Acquisition Advisor and President of MidMarket Capital, providing business broker and investment banking services to owners in the sale of information technology, software, and other technology based companies. Dave is also the editor of the Exit Strategist Newsletter and author of the Book Selling your Software Company - An Insider's Guide to Achieving Strategic Value
Saturday, March 10, 2018
Announcing Letter of Intent Consulting - an M&A Service Offering from MidMarket Capital
Since publishing our Book, Selling your Software Company - An Insider's Guide to Achieving
Strategic Value Click Here For Our New Book on Amazon our volume of inbound inquiries has
more than doubled. What has surprised us is the number of calls we are
receiving where the business owner either has a Letter of Intent (LOI) or is
about to receive a letter of intent from the buyer. Their emotions go from giddy anticipation to
anxiety as they look at a document that is complex and technical and contains
several terms that the business owner is not familiar with. Such thoughts as,
"Am I getting a fair deal?"
What is a subordinated seller note?
What does a cash free, debt free transaction mean? How is a net working
capital surplus calculated and what are the implications for what I receive at
closing. What are all of these reps and warranties? Is a non-compete standard
procedure?
Mistakes in negotiating this very important document can
cause the seller to lose $ hundreds of thousands, to $millions depending on the
size of the transaction. The other result is that after three months of
grueling due diligence, the buyer interprets loose wording in the LOI,
intentionally in their favor, and then calls in their very expensive CPA firm
and Law Firm to support their claim. The business owner faces a big haircut as
these interpretations are captured in the purchase agreement. What very often
happens, however, is the owner walks away from the deal. This is a big loss for
everybody.
Our hourly consulting service is based on 20 years of
experience in negotiating deals with the toughest buyers in the world, Private
Equity Buyers. We help to balance the deal experience scale between the buyer's
team and the seller's team. Our approach is to negotiate the LOI so that there
are no unexpected surprises or haircuts at the end of due diligence. We
incorporate very specific wording with formulas and examples that cannot be
interpreted in the buyer's favor no matter what big 5 accounting firm or major
law firm they bring in. This results in the terms and conditions negotiated in
the Letter of Intent become the terms and conditions translated into the
purchase agreement. We help get good deals across the finish line.
If this sounds familiar to your situation, please email me
at davekauppi@midmarkcap.com, or call me at my direct office number (630)
325-0123 or on my cell at (630) 215-3994
Dave Kauppi is a Merger and Acquisition Advisor and President of MidMarket Capital, providing business broker and investment banking services to owners in the sale of information technology, software, and other technology based companies. Dave is also the editor of the Exit Strategist Newsletter and author of the Book Selling your Software Company - An Insider's Guide to Achieving Strategic Value
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