Sagrada Familia, Barcelona Spain

Why would somebody sell their business they created from scratch that is making them money?

I heard so many reasons during my site visits or zoom calls,

Answers like:

1- Burnout or Boredom

2- Fed up with employees

3- Economic Downturn

4- They want to reitre

5- No Succession Plan

6- Problems with their partners

7- Health issues

8- They got an irrefutable offer

9- Industry changes due new regulations

10- Changing their lifestyle

Have you heard another reasons? Comment Below!

Sebastian Amieva

More Information Here: https://linktr.ee/sebastianamieva

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Equity Clawback Explained

Most of you may think the best deal structure is Contingent Consideration “Earnout” and for me one of the best is called ¨Equity Clawback¨.

A clawback gives one party the right to repurchase a certain amount of equity at a stated value if certain conditions are met.

In contrast to earnouts, a clawback works best when the Selling shareholder has a longer-term focus and prefers to make business decisions centered around shareholder appreciation as opposed maximizing cash proceeds in the near term. A clawback works in a similar way to an earnout but allows the Buyer to “clawback” equity retained by the Seller at close under certain scenarios.

Hope this helps to create smarter deal structures!

Sebastian Amieva

Learn more about Mergers and Acquisitions here: www.sebastianamieva.com

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  1. Not Conducting a rigorous Porter’s Five Forces Analysis.
  2. Having a board of members with zero industry experience.
  3. Overpaying for the deal.
  4. Poor due diligence.
  5. Deal structure terms (Downpayment, Stock, Earn outs, etc)
  6. Poor acquisition integration. Having a good 100-day plan helps.
  7. Poor assessment of the acquisition target’s culture.

The better you understand these common causes, the easier it is to avoid them.

Check out my personal M&A Blog https://www.sebastianamieva.com/blog

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How To Evaluate M&A Deals?

The smartest way is through the Porter’s 5 forces.

This analysis aims to establish how attractive a deal is for a buyer.

This is one of the most commonly spoken of management model. There is no management course in the world that doesn’t delve into Porter’s five forces analysis. It is the foundation of every strategy class. This model was introduced by Michael Porter way back in 1979. Porter’s five forces analysis is probably the first step for any entrepreneur to figure out if he wants to enter a certain line of business or not. This framework analyzes the attractiveness of a certain industry based on 5 parameters –

· Barriers to entry

· Buyer Power

· Supplier Power

· Threat of substitutes

· Competitive rivalry

Sebastian Amieva

PS Read More Articles Here 👇 https://www.sebastianamieva.com/blog

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Yes, that pretty much means a FREE Company for you!

Want to get a seller who is on the fence about selling to give in, sell, and carry half the purchase?

Sweeten the deal then make it easy for them to see the value :)

Note: I put a little twist on this to sweeten the deal — offered him 40% ownership in the new operating agreement.

If you need help with getting started as an Acquisition Entrepreneur get in touch here www.sebastianamieva.com

Join over 850+ business owners and entrepreneurs!

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Sebastian Amieva

Sebastian Amieva

Sebastian Amieva is the world’s most sought-after expert on Mergers and Acquisitions, working exclusively with six- and seven-figure entrepreneurs and investors