Section 17: 3rd party sales and the M&A process

Question 1

What is the main difference between Main Street Transactions and M&A Transactions?

Answer 1

Types of potential buyers

Question 2

Name the four types of buyers

Answer 2

Individual
Financial
Strategic
Internal

Question 3

Name four advisors that are typically involved in the M&A Process?

Answer 3

a. Business consultants
b. Investment bankers
c. Business brokers
d. Wealth managers / financial planners
e. Attorneys
f. Insurance brokers
g. CPAs
h. Specialists (ESOP)

Question 4

What is the Super Rule of Five?

Answer 4

If the growth rate is fast enough (or synergies compelling enough) that the effective multiple paid 1 or 2 years out is 5x, the deal may be priced right.