Hey There, Entrepreneurs!
Getting into an M&A deal? You'll likely chat with brokers, and they've got questions. Let's break down what they might ask and how you could answer. This is super useful for start-ups and family businesses stepping into M&A.
What You Might Be Asked and How to Respond
1. How You'll Pay for the Business
- They'll ask: How's the money coming in for this deal?
- Try saying: I've got some savings, investors, and maybe a loan lined up. Plus, I might ask the seller to chip in a bit. This shows I'm serious and they're still part of the game.
2. Checking Out the Business
- They'll ask: What's your plan to look into the business?
- Try saying: I know my stuff about M&A, so I'll be thorough but quick. I've got a team ready to help. It's about being clear upfront so there are no surprises.
3. Types of Businesses You're Into
- They'll ask: What kind of business are you looking for?
- Try saying: I'm open but not into super complex stuff. I'm after a business that's stable and can handle change well.
4. Running the Business After Buying
- They'll ask: Will you run it or hire someone?
- Try saying: I'm all in, planning to move and take charge. But I don't want a business that's too dependent on the owner doing everyday tasks.
5. Thinking About Price
- They'll ask: How do you figure out what the business is worth?
- Try saying: It's about finding the right fit. I won't stress over every penny. I know that finding the right business and getting the deal done matters more.
Wrapping It Up
Talking to brokers is key in M&A. Be clear about how you'll pay, how you'll check out the business, what you're looking for, your role post-buy, and how you think about the price. It's all about showing you're ready and serious about a good deal.
