How to Attract the Acquirer You Crave

How to Attract the Acquirer You Crave

“One key in having a successful sale of your business is to hire a coach 3-5 years prior to your sale. Anthony Fracchia did this and he saw a substantial increase in the value of his firm when he sold,” shares Sam Thompson a Minneapolis business broker and the president of M&A firm Transitions In Business. “This interview has plenty of valuable tips when selling your business. From identifying your non-negotiable terms to telling your employees you’ve sold your business.”

Anthony Fracchia built Altruis Benefit Consulting to $2.5 million in revenue when he started to get unsolicited calls from potential buyers. He initiated conversations with an acquirer only to learn they planned to gut his staff and kill his brand. Fracchia cut off talks and did some soul searching about what was important to him. He developed a list of four “non-negotiable” deal terms and started to use them as a way to filter out potential suitors. In the end, Reliance Global Group Inc. (NASDAQ:RELI) agreed to all four of Fracchia’s conditions acquiring Altruis for around 8 times EBITDA in a mixture of cash, stock, and earn-out.

In this episode, you’ll discover how to:

  • identify your non-negotiable deal terms.
  • pick a partner to go into business with.
  • tell your employees you’re thinking of selling without alienating them in the process.
  • avoid getting suckered into a proprietary deal and giving up negotiating leverage.
  • evaluate what an acquirer plans to do with your business after you sell.

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