2. An Overview
} What is today’s marketplace?
} What are valuation trends?
} Deal Structure
} What are the steps?
} Do’s and Don’ts!
} How do you measure success?
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3. } Vibrant, robust
} Lots of Buyers and Sellers
} Seller Motivations
◦ Ownership Transition/Leadership
Succession FAILURE
◦ Fund growth, geographic expansion, service
offerings
◦ Unsolicited Offer
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4. } Buyer Motivations
◦ Geographic Expansion
◦ Expand Services
◦ Public Company growth in earnings
◦ Diversification
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5. } Creeping upward
◦ Multiple of EBITDA, as adjusted – WHICH EBITDA?
◦ Questions of sustainability
◦ How do Buyers protect against drop off in EBITDA,
Sellers who leave?
◦ Earnouts, Liquidated Damages.
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6. } Asset Purchase vs. Stock Purchase
} Payment of Purchase Price
◦ 50% in cash
◦ 50% in 3-4 year note
} Deliverables by Seller
◦ Target Book Value/Working Capital
◦ Collection of Target Deliverable
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7. } Employment Agreements
} Clawback Purchase Price if Sellers leave early
} NonCompetition Agreements
◦ How long?
} Indemnification
} Prior Acts Insurance
} Buyer’s Stock
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13. George E. Christodoulo, PC
Lawson & Weitzen, LLP
88 Black Falcon Avenue
Boston, MA 02210
617-439-4990
617-439-3987
gchristodoulo@Lawson-Weitzen.com