All happy families resemble one another, each unhappy family is unhappy in its own way.Tolstoy’s famous quote on families applies to deals. A busted deal is like an unhappy family. Every deal that falls apart falls apart for its own reasons. But, just as there are common types of problems that plague unhappy families (money, health, etc.), there are types of mistakes that failed deals often have in common.
We also decided that we should talk to a few other companies to see if they would be interested in making an offer as well.The most important factor in negotiating the best possible valuation and deal structure is to have as much competition as possible. Going wide to many buyers is the best way to achieve that. So running a narrow process is usually a mistake.
We started by brainstorming a fairly comprehensive list of companies that could be potential acquirers. Then we whittled down the list to those that seemed like they should be a natural fit, could potentially move quickly, and where we had solid executive-level contacts.
Horizon Partners is a boutique financial advisory firm serving companies in digital media, software, and related growth sectors. Horizon provides advisory services to help companies raise capital and execute mergers and acquisitions.