PE firms are very popular right now. Everyone wants a piece of the pie. Just realize that they’re going around and destroying small businesses everyday in America. They just acquire, acquire, acquire and never build a damn thing! They use debt to acquire and then destroy. PE is destroying America 😢
Going for Negotiations Of The Terms (covenants) and understanding the risk of the deal and its outcomes, and also the heavily negotiating terms arranged for...
Thanks Matt for sharing some of the concerns you had, family conflict wasn't one that I really considered to much. I think because my kids are smaller. I do think that my kids will miss the opportunity to work in the business with me, even for a short while, which would have been a pretty good memory for everyone. In my 'business selling adventure' we are planning to exit the business as well. My main concern, apart from having to find employment, is the friendships that have been formed with staff and customers. I don't want to necessarily just cut all ties with everyone, though it seems like it will go that way. Even if we don't, the power structure will be different (more equal? I hope that it already was, but something for concern). To be honest I'm not really looking forward to selling for those reasons, but we are feeling exhausted and it seems like it's time for us to move on. Such is life...
Thanks for watching Tom, happy to provide perspective on our investment evaluation process. Feel free to shoot us an email with any follow up questions at chris@mcmcapital.com
Hi, I am currently working on a deal wherein the Target is a restaurant chain and given that sales of the Target are all cash sales, the Target constantly has a negative working capital balance (when excluding cash) and this is mostly due to large Trade Payables. Do you have any thoughts as to how I should treat this? My thinking is to either reduce the purchase price by the value of the negative net working capital balance, or request that the seller ensure that there is enough cash left within the Target, to ensure that the cash balance is equal to the negative working capital balance. Any help will be appreciated.
