An under the tent deal is usually one that is not publicly disclosed and where only one or a select few buyers know about it. The seller may be a company where a management buyout is being contemplated and management has approached the buyer (usually a private equity firm) to discuss investment… View Full Term
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By: Exit Planning Institute
By: Yiannis Empeoglou
By: Divestopedia Team
By: John Carvalho | President, Divestopedia Inc.
A proprietary deal lets a specific buyer have a first chance to purchase a company before the company is presented to other buyers by the owner or an investment banker. Proprietary deals are often presented to specific buyers based on their perceived fit with the seller. While proprietary…
When people ask about the payback period their intended question is "When will I get my money back?" In order to answer this question, the payback period must deal with cash flows — e.g., invest € 100 today, receive € 20 in year 1, € 30 in year 2 and €…
Investment banks offer expertise and know-how that can add significant value to any transaction, but complicated fee structures can be daunting and confusing in picking an investment banker. In negotiating fee structures, a business owner should consider the goal he or she seeks to…
Deals fall apart for a variety of reasons. In part 1 and part 2 of our private equity series, we have asked some prominent private equiteers to give us their perspective on why deals fail. These guys are some of the best in the business, so take notes… Blackhawk Partners, Inc.…
By: John Carvalho
Small business owners are not experts at this process. Most small business owners only sell their business one time, so there's a level of concern and trepidation about pursuing a buyout of a partner when it's not something that you're an expert at. It's a broad question,…
By: Paul Wormley | General Partner, Hadley Capital
This is a question that goes to succession and exit planning. The reality is that most small business owners don't have succession plans. I wrote a blog about baby boomer succession and more than 60% of baby boomers lack a succession plan in their business and this is what we commonly…
When working with an owner on their transaction, how does an M&A advisor ensure that the business is as valuable as possible at the point of transition? What steps…
M&A Advisors work on what is arguably the most significant financial transaction in a person’s life: the sale of their business. As a member of a business…
*Owner and company names have been changed to protect the privacy of the individuals and businesses represented in the case study.*When planning to exit your business,…
(Article originally posted here.)In the M&A world, there are few terms as dreaded as the “Re-Trade”. The continued market uncertainty, coupled with…
By: Michael Carter
It’s the dream of just about every private equity fund manager to source a proprietary deal. Why? Because they are often less trafficked by buyers and therefore…
Over the last few months I have talked to three different business owners who, in hopes of selling their businesses, reached out to a single potential buyer they…
The succession or exit by a business owner is usually the single largest financial transaction in their lifetime with a lot at risk as typically a majority of an…
By: Scott Yoder
Regardless of the current media concentration on the pros and cons of private equity firms and investments, those who work in the business or those considering…
By: Jack Kearney | Managing Director
Business buyers do not often reveal their hands about why they feel a business is an attractive acquisition prospect for fear of driving up the price. They do, however,…
By: Dave Kauppi
That dollar figure, whether written on a napkin over coffee or floated in a conversation, is not a binding offer. Any potential acquirer will need to conduct a due…
By: Paris Aden
One of the most important elements of a great investment is getting the right people involved. The right people bring innovative ideas, create opportunities and help the…
By: Jeffrey Kadlic
In my previous article, Value is in the Eye of the Beholder, I presented the idea that the definition of value can vary depending on the stakeholder. I stated that for…
By: Erick Hamdan
The exit plan is progressing. We have identified the goals under Step 1, determined the financial needs upon exit under Step 2, assessed the current value of the…
By: Jason Kwiatkowski
If you started your business from scratch, the chances are that you’ve invested a lot of your time and financial resources into growth. You have been through thick…
By: Lyle Solomon | Principal Attorney
I sat down with Tom Hendrickson, the founder and president of Mitre Media, an online financial media company focused on aggregating a sophisticated audience of…
By: Cory Janssen
Under the Tent
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Adam has been a lead advisor in the UK for M&A for over 10 years. His insights and advice come from a successful history of the due diligence…
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Andrew J. Sherman is a Partner in the Corporate Department of Seyfarth Shaw LLP. Andrew focuses his practice on issues affecting business growth for…
Director of Product Marketing and Strategy at Intralinks.