Advice for Entrepreneurs, Explanations of Common Financing Jargon, Fund Raising, Mirus Capital Advisors, News
Authored by my partner, David Hoffer, this article (LINK: http://www.merger.com/admin/research/uploads/Mirus%20Capital%20Advisors_2008_July_VP_Issue%2031.pdf) demystifies the contents of purchase and sale (“P&S”) agreements. This viewpoint will help you be better prepared to analyze your own P&S effectively and understand what portions require the most attention.
- Understanding the framework of a P&S will prepare you to focus on the issues that will have the biggest impact when you sell your company.
- Making sure you fully understand how various risks are allocated in your P&S agreement will help you avoid nasty surprises after the sale has been completed.
- The negotiation process can become emotional for sellers; having a good understanding of the types of issues that might arise in advance may help you keep the process in perspective and your emotions in check.