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Article: Factors beyond purchase price play major role in biz deals.(Small Business)(business acquisitions)
- Article from:
- Crain's Cleveland Business
- Article date:
- October 9, 2006
- Author:
CopyrightCOPYRIGHT 2006 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Joseph Carson
The first thing on most people's minds when selling a business is the question, "How much money am I going to get?'' Though this is important, there is more to a deal than purchase price.
In any transaction, the seller is seeking to maximize value while the buyer is seeking to maximize return on investment. In their quest for agreement, both parties seek to improve their positions by nipping at other deal-structuring issues. These "non-purchase price'' matters may have a significant impact on the transaction's overall economics.
Issues unrelated to purchase price are unique to each transaction. However, they may include ...