@boardyai@andrewdsouza building BEFORE PARTNERS, outsourced M&A for founders who need institutional deal execution without the full-time team. Boardy Pro would be huge for this
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Many founders are regretting the idea of "free" capital, realizing that it comes with significant drawbacks. High-priced rounds put pressure on exit and growth rate, SAFEs add to the need for big returns, and non-dilutive financing has its risks. Easy money is not as easy.
6/ 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.
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.
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.
Broker Questions in SMB M&A Deals
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 if you stepping into M&A.
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.
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.
In 2024, VCs are likely to grow anxious to realise returns for their LPs. This anxiety might lead to an increased interest in secondaries. As a founder, staying informed about these trends is more crucial than ever. How will you use this information to guide your decisions?