Around the Web: A Week in Summary
A recent article posted on Divestopedia.com entitled “The Investment Banking Landscape: Different Types of M&A Firms” gives an overview of the different types of M&A firms as well as how they can be useful in different situations. Owners interested in selling should know how each type of firm works and how each could be of use to them during the sale of their business. The following represent these different types of firm:
- Boutique Investment Firms
- Regional Investment Banks
- Bulge Bracket Investment Banks
- M&A Advisory Firms
- Business Brokerage
Each of these types of M&A firms has its own benefits and drawbacks, so it is very important for an owner to understand and explore the options available to them before settling on one.
A recent article from the Rock LaManna Blog entitled “How Channeled Resources Overcame the 7 Challenges of Family-Owned Businesses” outlines how Channeled Resources, a family-owned business, has overcome some of the biggest challenges in owning and running these types of businesses. Success never comes easy, but continued success over several decades within a family-owned business can be even more difficult. The following represent seven enormous challenges faced by family-owned businesses:
- Failing to sustain through generations
- Treating the business like a fallback option
- Casting family members in similar roles
- Lacking an external view
- Overlooking an exit plan or succession planning
- Dealing with intergenerational rivalries
- Overcoming the psychological ties between the founder and the business
Channeled Resources has been able to overcome these challenges and succeed after almost four decades in business, and their example can be a very valuable model for other businesses and owners in a similar situation.
A recent article posted on NJBiz.com entitled “What to consider when buying, selling a business” identifies some important things to consider during the business sale process on both ends of a deal from the perspective of a corporate lawyer. Three of the most commonly overlooked aspects of a business transaction include: third party consents, a bulk transfer notice, and indemnification.
These elements of a sale can be easily overlooked on either end of a transaction, but with important timelines and time schedules needed for these and other dependent transaction processes, it is important to understand and work through them early.