Term sheets are invaluable in that they can serve as a point of orientation during negotiations. Thanks to term sheets it is possible to keep everyone involved, focused and on target. What is a Term Sheet? These nonbinding agreements detail the basic terms and conditions of a deal. It is different from a legally binding agreement, so it is often misunderstood by buyers and sellers. However, the term sheet serves the purpose of moving a deal along and helping both parties to get on the same page. A term sheet can be thought of as a preliminary proposal that contains a range of information that is essential to the deal. A well-crafted term sheet includes more than the price, as it also includes key terms and any major considerations, such as employment agreements, consulting and more. In Russ Robb’s book, “Streetwise Selling Your Business,” Robb concluded that a term sheet serves to include the price range along with the basic structure of a deal. Importantly, Robb also notes that a … [Read more...]
Archives for July 2024
Mastering Your Mindset: Strategic Approaches to Selling Your Business
At some point, the odds are exceptionally high that you’ll need to sell your business. Today, fewer businesses are being passed on to the next generation, increasing the likelihood that you will be selling yours eventually. Regardless of your business’ stage of life, the time to prepare for its eventual sale is now. Many believe that the most effective approach to selling a business is to avoid adopting a purely “selling” mindset and instead aim to position the business to be purchased. Let’s take a look at a historical example. In Cary Reich’s 1996 book “The Life of Nelson Rockefeller”, an insightful anecdote illustrates this point. In negotiations over Rockefeller’s Mesabi iron ore properties with J.P. Morgan, John D. Rockefeller, Jr. astutely replied to Morgan’s team asking for a price with, “I think there must be some mistake. I did not come here to sell. I understand you wish to buy.” Despite Morgan eventually purchasing the properties, the price was set significantly higher. The … [Read more...]
5 Essential Tips for Your LinkedIn Profile
LinkedIn is a crucial platform for professionals serious about business. Its versatility allows business owners to harness its potential in numerous ways. By implementing the following tips, you can enhance your LinkedIn profile to attract more leads and expand your network rapidly. 1. Send Connection Requests Initiate by actively sending connection requests. Most LinkedIn users understand its networking purpose, making it easier to connect with potential clients, CPAs, attorneys, and other influential individuals. Use LinkedIn’s search tool to identify and invite relevant contacts. The platform’s improved connections recommendation feature is invaluable for expanding your network strategically. 2. Build Out Your Profile Before diving into connections, ensure your profile is comprehensive and up-to-date. Include a professional photograph or yourself, contact information, and a clear summary detailing who you are, what you do, and how you and your business can add value. Focus on … [Read more...]