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Category: Negotiating

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Advice Leadership Negotiating

Unlocking the Power of Intrinsic Motivation

Intrinsic motivation is an internal drive that goes beyond external rewards, igniting a sense of purpose and personal satisfaction. My book Ingaging Leadership: The Ultimate Edition explores how intrinsic motivation can be a transformative force in enhancing employee engagement, satisfaction, and performance.

In today’s workplace, where traditional incentives like bonuses and promotions don’t always lead to long-term engagement, intrinsic motivation becomes crucial. This approach, which is about connecting employees with meaningful and fulfilling work, can be the key to a more motivated, productive workforce.

What is Intrinsic Motivation?

Intrinsic motivation is fueled by personal fulfillment, a sense of achievement, and alignment with one’s values and goals. It stands in contrast to extrinsic motivation, which relies on external factors such as monetary rewards or recognition. Employees driven by intrinsic motivation work because they genuinely enjoy what they do, feel connected to the purpose of their work, and gain satisfaction from their contributions. This internal drive makes them more resilient and often more creative in overcoming challenges.

Why It Matters

There are several reasons intrinsic motivation is essential in the workplace:

• Sustainable Engagement: When employees are intrinsically motivated, their commitment is more likely to last. They don’t just work for a paycheck; they work because they care about the outcomes of their efforts, leading to consistent engagement.
• Higher Performance: Intrinsically motivated employees are typically more dedicated and go the extra mile. They invest greater mental and emotional energy in their tasks, often leading to higher-quality work and innovation.
• Greater Satisfaction: When employees feel connected to what they do, their job satisfaction increases. This sense of personal achievement and relevance creates a positive work experience, which benefits both the employee and the company.

Practical Tips for Leaders

My book provides leaders with actionable strategies to unlock intrinsic motivation in their teams:

• Align Roles with Passions: Help employees work on tasks that match their strengths and interests. When people enjoy what they do, they’re more motivated to excel.
• Foster Autonomy: Give employees the freedom to make decisions and take ownership of their projects. Autonomy can empower them to approach challenges creatively and confidently.
• Provide Purpose: Make sure employees understand how their work impacts the broader mission of the organization. When individuals see the big picture, they’re more likely to feel invested in the results.

Conclusion

Unlocking intrinsic motivation can elevate employee engagement and performance, leading to a more productive, satisfied workforce. For more insights on fostering intrinsic motivation, my book Ingaging Leadership is a valuable resource for leaders and managers alike.

 

Categories
Entrepreneurship Negotiating Networking

ON THE SUBJECT OF TRUST

ON THE SUBJECT OF TRUST

Universally acknowledged is the undeniable importance of trust in fostering strong and thriving relationships. Regrettably, trust often goes unnoticed until it shatters, leaving individuals to grapple with the aftermath. At such a dire juncture, rectifying the harm inflicted may prove an insurmountable challenge.

Instead of relying on happenstance, we must actively concentrate on cultivating trust. By directing our attention towards this goal, our energy will naturally gravitate in that direction, aiding us in achieving it. As we embark on the journey of building high-trust relationships, it is imperative to bear in mind three fundamental truths about trust. Firstly, trust is not an incidental occurrence; rather, it is a skill that can be acquired and honed through deliberate and conscientious efforts.

The essence of trust lies in its nature as a skill rather than a mere spontaneous occurrence. Acquiring and nurturing trust demands intentional dedication and effort. To embark on this journey, having a clear framework that defines the components of trust within a relationship proves beneficial. In our Building Trust training program, we rely on the ABCD Trust Model, a powerful representation of the four pivotal elements of trust. When cultivating trust within a relationship, one must embody the qualities of being Able, Believable, Connected, and Dependable. Demonstrating competence, credibility, establishing meaningful connections, and unwavering reliability all play instrumental roles in building trust between individuals.

Trust is not merely an abstract, feel-good concept but rather a tangible skill that

can be honed through competence, integrity, connection, and dependability. The first element, “Able,” emphasizes the significance of being trusted due to one’s proficiency and expertise. When individuals exhibit knowledge, skills, and capabilities relevant to their roles, they naturally become trustworthy in their endeavors. The second element, “Believable,” centers on acting with integrity, adhering to personal and organizational values, and conducting oneself honestly, ethically, and fairly in all interactions. Establishing a sense of credibility and trustworthiness relies heavily on upholding these principles.

Moving forward, the third element, “Connected,” highlights the importance of building rapport and effective communication with others. Those who genuinely care about the well-being of their peers foster trust through genuine connections. The final element, “Dependable,” accentuates the value of keeping promises and being accountable, responsive, and reliable in fulfilling commitments. Such consistency and reliability create a strong foundation for trust within relationships.

The correlation between trust and organizational success is undeniable. Trust doesn’t solely reside within the realm of soft skills; it drives tangible results within organizations. Extensive research by the Great Place to Work Institute reveals that high-trust organizations boast a remarkable 50% lower turnover rate than their low-trust counterparts.

Furthermore, employees who trust their leaders perform 20% better and display an astounding 87% reduced likelihood of leaving the organization. The benefits of trust extend

regular performance, trustworthy employees are more inclined to remain with the organization, endorse it as a desirable workplace, and actively contribute to the collective welfare.

Taking the initiative to extend trust plays a crucial role in its development. Trust and risk go hand in hand, requiring someone to take the initial leap of faith. By trusting others, we set the stage for them to prove their trustworthiness and reciprocate the gesture. This virtuous cycle strengthens the foundation of trust within our relationships.

Like tending to a garden, building trust demands effort and consistency. Planting the seeds of trust, nurturing their growth, and consistently fostering their development is essential to witnessing the gradual but rewarding growth of high-trust relationships over time.

Trust is far from an intangible concept; it is a learnable skill built upon competence, integrity, connection, and dependability. Organizations that prioritize trust witness substantial benefits, and trustworthiness begins with individuals extending trust to others. Nurturing trust within relationships requires ongoing effort and patience, but the eventual rewards are invaluable, akin to a bountiful garden yielding the fruits of high-trust relationships.

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Negotiating Personal Development Women In Business

Do You Know What You Want and Insist on Getting It?

Do you know what you want and insist on getting it? I was reminded of this on vacation in Tahiti when a skinny stray cat came begging at my table. She was clearly hungry – bordering on emaciated (although gorgeous) – yet she refused my proffered treats of shrimp, rice and avocado (all I had to offer from my poke bowl), only deigning to accept my offering when I ‘borrowed’ some fish from my hubby’s plate.

Gotta love a girl who knows what she wants and doesn’t settle for less. Would you say that about yourself? Are you someone who knows what they want and insists on getting it? If you’re like most people, the honest answer to that is probably, “not really”.

Why is that? Why do we allow ourselves to go through life settling for less than our heart’s desire?

Here’s a few tips and insights to help you on the path to getting more of what you want and deserve …

I Work on Self-Love and Self-Worth

If you don’t value yourself, you will inevitably ask for less and get less than you deserve. If you seek external validation rather than building an unshakable sense of self-worth, you will sell yourself short. If you don’t own your value, others won’t recognize it.

Don’t make yourself smaller or play small. Don’t shy away from receiving. Recognize that you deserve great things in life.

How? Create your personal brag list. Start by listing things you love about yourself. Consider all the positive attributes, assets, and accomplishments. Consider the tangible and intangible, the physical, mental, and attitudinal. Include your qualities as well as your skills. This exercise is a valuable and critical way to retrain your brain – to undo the negative conditioning that you’ve been inundated with since childhood.

Read your brag list each night before bed, allow it to wash over you and absorb its essence. Add to your brag list each night and let yourself bask in a sense of your own worth as you sleep.

Our intrepid kitty loved herself enough to turn down what didn’t suit her and insist on getting what she loved.

 

II Get Clarity

While it seems obvious that clarity is important, most people fall short in achieving their dreams because they lack clarity about what that looks like. You can’t hit a fuzzy target in darts, archery or in life. Take time to drill down about what you truly seek in every aspect of your life.

Imagine that it’s 10 years from now. What do you desire in your life in each of the following categories:

  • Health & Fitness
  • Finance & Wealth
  • Mission & Vision
  • Growth and Learning
  • Career
  • Family and Friends
  • Mission and Vision
  • Emotional and Mental
  • Quality of Life
  • Spiritual
  • Intimate/Romantic Relationships

 

Don’t make the mistake of only focusing on one category. It’s important to build balance into your life view.

And as you explore each category, be sure to invoke all your senses. Allow yourself to see it, hear it, taste it, feel it, and smell it. Be as specific as possible to really anchor in those desires to improve your ability to live into them.

Our kitty heroine had absolute clarity about what she was seeking … and as a result she got it.

 

III Set Boundaries

In addition to knowing what you do want in your life, it’s important to have clarity around what you won’t tolerate. Setting boundaries is an often-overlooked aspect of negotiating our best lives.

Without boundaries, it’s a slippery slope to accepting less than what we want and actually undercutting our ability to achieve our true heart’s desires. While I advocate flexibility in any negotiation (to enable pivoting when the information you relied upon changes or when a better option presents itself), it’s important to set intentional parameters going in. These are sometimes known as your ‘bottom line’, or ‘resistance point’.

Considering these boundaries in advance avoids getting caught up in the moment and making choices that don’t serve your long-time goals and vision.

The kitty heroine in our story not only knew what she wanted but had clarity around what she didn’t want. She wasn’t willing to take scraps that didn’t satisfy her specific desires and needs.

 

IV Go For It

Once you have practiced self-love, gotten clarity about what you seek and boundaries beyond which you’re not willing to compromise or settle, then go for it. So many people spend time thinking and analyzing and dreaming but fail to get into action to make those dreams a reality.

  • Don’t make excuses about your inaction (the timing is off, etc).
  • Don’t procrastinate, living a ‘one day’ mindset (when this happens, I’ll move forward with my plans).
  • Don’t wait for perfection.
  • Don’t let your fears hold you back (i.e. fear of the unknown, fear of rejection, fear of being judged, fear of failure … or success).

Instead, get into action. Ask for what you want. Follow up.

In doing so, you will dramatically increase your odds of getting what you want in life.

Categories
Negotiating Personal Development Women In Business

How to Negotiate Self-Regulation

I’ve noticed an increase in emotional turmoil recently – both within my household and in the broader world at large. As I dealt with the issues giving rise to the turmoil and emotional upheaval in the lives of those closest to me, it got me to thinking about the corresponding turmoil and malaise beyond our doors and beyond borders. It struck me that a common denominator at the core of some of this unrest is self-regulation … or more accurately, the lack of self-regulation. And so, I decided to dedicate this post to this important issue.

What is it?

Self-regulation starts with awareness (about your thoughts, feelings, and actions). Much lip-service is paid to the concept of self-awareness these days. And yet, with our increasing technological reliance and decreasing human interaction, an argument can be made that we’re seeing less actual self-awareness.

I often say that our first and most important negotiation is with ourselves … negotiating our mindset. Recognizing that we engage in this negotiation constantly throughout our day, allows us to increase our intentionality around how we choose to show up. Don’t allow yourself to buy into the myth that your thoughts, feelings and reactions are beyond your control. Choose to engage in this negotiation with full awareness.

Why does it matter?

Self-regulation is key to successful relationships. This is critical as human connection is a universal need and desire. In fact, the quality of our relationships has been recognized as the #1 correlative factor determining our longevity in life. Note too, that human connection includes deeper connection and alignment with ourselves.

Self-regulation improves our well-being and determines our overall success in life. When we uncover how to recognize and manage our emotions in conjunction with handling our behaviour, we’re better able to manage stress, deal effectively with conflict, and achieve our desires.

How to develop it?

Mindfulness is a great first step on the path to effective self-regulation. Some people shy away from the idea of mindfulness, assuming it’s too ‘woo woo’. In fact, mindfulness is simply increasing our intention. Being present. Paying attention. Not judging. Simple breathing exercises and awareness helps improve our mindfulness, which in turn improves our self-regulation abilities.

Managing our thoughts and the meaning we attach to them is also key to self-regulation. According to a study by the Cleveland Clinic, the average person has 60,000 thoughts a day. Of these thoughts, a staggering 95% repeat each day. Of those repeating thoughts, sadly, 80% are negative. Imagine the power of flipping those negative stories that we inundate ourselves with daily and instead, choosing more empowering interpretations of our life experiences moment to moment.

Note that this doesn’t mean you’ll never have negative thoughts or emotions. The key is in recognizing them and choosing, with intention, to dial any given emotion up or down. Imagine you have a physical dial and for anything you feel, you can adjust that dial. Use your breathing to help with the adjustment.

One of my favourite quotes is:

Between every stimulus and response lies a space.
In that space lies our freedom and power to choose a response.
In our response lies our growth and happiness.

In other words, while we can’t control everything that happens externally in our lives, we can control how we choose to react. Every time something happens in your life you have a moment in which to choose what your response to that situation will be. Use that pause to your benefit. Imagine your dial and determine (again with intention) how you could respond to step into the best version of yourself.

The beauty of this subject is that it is not rocket science. With a little practice you can master the art of self-regulation. If you do, it will improve your inner peace, your relationships, your social engagement and connection, and your ability to live into your dreams and vision.

Categories
Leadership Negotiating Personal Development

True Listening: The Art of Connection and Trust

True Listening: The Art of Connection and Trust

In our fast-paced world, where distractions are abundant and attention spans are fleeting, true listening is more valuable than ever. True listening transcends the mere act of hearing words; it involves fully engaging with the speaker mentally and emotionally. It is an active process that fosters genuine connection and trust, essential components of meaningful human interaction. When we listen with our whole being, we understand the words being spoken and the emotions and intentions behind them.

The essence of true listening lies in being present. This means setting aside our thoughts, judgments, and distractions to focus entirely on the speaker. It requires us to silence the internal dialogue that often competes for our attention, allowing us to be fully immersed in the conversation. This level of presence is rare in today’s society, where multitasking is the norm and digital devices constantly vie for our attention. However, the rewards of true listening are profound. When we are genuinely present, we signal to the speaker that they are valued and respected, fostering a sense of trust and mutual understanding.

The late Dr. Stephen R. Covey once observed, “Most people do not listen with the intent to understand; they listen with the intent to reply.” This statement captures the essence of a widespread issue: many of us are more focused on formulating our responses than on truly understanding what the other person is saying. Covey also noted that “few of us ever practice it [listening] in a way that improves our ability to listen to others and deeply understand their concerns.” His insights underscore the need for intentional practice and training in the art of listening, something that is often overlooked in our education and daily lives. “We have such a tendency to rush into the conversation and interrupt before the person finishes their point,” Covey pointed out, highlighting a common barrier to effective communication.

Understanding Covey’s observations is crucial for several reasons. Firstly, it sheds light on the fundamental gap in our communication skills. We are taught to read, write, and speak, but not to listen. Listening is often assumed to be a natural ability rather than a skill that requires cultivation. This assumption leads to a lack of emphasis on listening in our educational systems and professional training programs. Consequently, many individuals grow up without ever learning how to listen effectively.

Secondly, Covey’s insight reveals the self-centered nature of our listening habits. When we listen with the intent to reply, we are essentially prioritizing our thoughts and responses over the speaker’s message. This self-centered approach can hinder genuine understanding and empathy, as we are not fully engaged with the speaker’s perspective. Instead of being open and receptive, we become preoccupied with our agendas, which can create barriers to effective communication and connection.

True listening also involves broadening our self-awareness. By understanding our own biases, emotions, and triggers, we can approach conversations with an open mind and a compassionate heart. This self-awareness enables us to respond thoughtfully rather than react impulsively, creating a safe space for honest and open communication. It allows us to recognize the impact of our words and actions on others, promoting empathy and understanding.

The impact of true listening extends beyond individual interactions; it has the power to transform relationships and communities. When we listen deeply, we create a ripple effect of connection and trust that spreads to those around us. It enables us to build stronger, more authentic relationships based on mutual respect and understanding. This, in turn, fosters a sense of community and belonging, where individuals feel seen, heard, and valued.

Moreover, true listening provides us with a unique perspective on our place in the world. By tuning into the experiences and viewpoints of others, we gain a deeper understanding of the diverse tapestry of human existence. It allows us to see beyond our limited perspective and appreciate the interconnectedness of all beings. This broader perspective enriches our lives and informs our actions, guiding us toward more compassionate and inclusive ways of being.

In practice, true listening requires intentionality and effort. It demands that we cultivate patience, humility, and curiosity. We must be willing to sit with discomfort and uncertainty, embracing the unknown rather than seeking quick answers or solutions. True listening is not about fixing or solving; it is about bearing witness to the human experience in all its complexity and nuance.

In conclusion, true listening is a transformative practice that goes beyond the mere act of hearing words. It involves being fully present, broadening our self-awareness, and embracing the interconnectedness of all beings. By cultivating the art of true listening, we can foster genuine connection and trust, build stronger relationships, and create more compassionate and inclusive communities. In a world that often feels fragmented and disconnected, true listening offers a path to deeper understanding and meaningful connection. Understanding and embracing the wisdom of Dr. Stephen R. Covey’s observations about listening can guide us toward more effective communication and richer, more meaningful relationships.

Categories
Best Practices Leadership Negotiating

Why “A Man in Full” Reinforces the Need for the Art of Feminine Negotiation

The new highly anticipated Netflix series, “A Man in Full”, demonstrates the desperate need for a new reframe on negotiation success. In fact, watching the show reminded me why I launched my mission for the Art of Feminine Negotiation. ™

While the series should play as a parody of masculine toxicity, sadly, it rings true for much of what passes as strong leadership these days. Whether it’s the business tycoon, the banking hotshot, the simpering loans officer, the mayor, or legal counsel, the male leads can hardly be called protagonists. Each in their own way are antagonists or anti-heros, displaying behaviour that is neither acceptable nor productive.

The men in the show put on a full-on display of toxic masculine conditioning run amok. Not surprisingly, there is an inordinate amount of references to balls and pricks with a corresponding number of F-bombs or derivatives thereof thrown into the mix. The language reflects the behaviour.

The men brag about their relative abilities to ‘kick another man’s ass’ (both literally and figuratively) and are hell-bent on destruction of their ‘opponents’. Ego and testosterone abound in virtually every interaction between the males in the show. As in real life, this does not end well.

Respect and dignity are not a factor in their negotiations. In fact, the over-riding goal in almost every negotiation featured appears to be the humiliation and belittling of the other side. Brutish bullying seems to be the go-to modus operandi even when it’s to the character’s detriment.

Winning is everything, but unfortunately their concepts of winning do not allow for best outcomes. Taking the most aggressive path is always chosen even when it doesn’t best serve the party taking that approach. Charlie Croker (played by Jeff Daniels) brags that ‘I may be a sore loser sometimes, but I’m a vicious winner’ as if this is a sign of his superior business acumen.

Don’t get me wrong. The production is fabulous, and the acting is exceptional. It’s the message I take issue with. I expect the hope is that the audience will see the folly in the traditional competitive and polarizing approach to negotiating (in business and life) and choose a better path – a more collaborative, creative path to a better future. Heck, that’s the point of the Art of Feminine Negotiation™ – to truly seek to understand and meet the needs of the other party in our interactions and negotiations. But I fear that the audience will take away the opposite lesson, believing that emulating this toxic, divisive behaviour is somehow a sign of power and success.

Allow me to spin some better lessons to take away from the show:

1. Surrender ego for better negotiated outcomes. Bumper-car egos are an impediment to good negotiating. Parking ego when approaching a negotiation will virtually always make space for better resolutions.
2. Build rapport and trust and with it, better results. Effective negotiation is all about connection. Personalized attacks destroy the possibility of connection that allows for bigger and better opportunities.
3. Empathy is key to getting to the heart of the matter and opening space for unexpected wins for all.
4. Holding all your cards to your chest (rather than allowing for transparency and vulnerability) may preclude your ability to find the real deal.
5. Be willing to be flexible. Staying too attached to one particular outcome precludes your ability to see better possibilities lying on the table for the having.
6. Aggressiveness is not the same as assertiveness. The former shows a lack of confidence in your knowledge of the subject whereas the latter comes from effective preparation and intention in showing up as the best version of yourself.
7. Curiosity is more effective than bullying in negotiations.
8. Everyone wants to feel seen and heard. Shutting down either is not an effective way to get your best result.
9. Integrity matters in negotiation and in life. I mean this in both sense of the word. Sacrificing our moral code inevitably backfires as does coming from a place not in keeping with our core values.
10. Machismo is not strength. In fact, the so-called ‘soft skills’ are the strongest way to best outcomes.

Hope these simple tips give some value in approaching your next negotiation.

Cindy

Categories
Capital Mergers & Acquisition Negotiating

Merger and Acquisition Consulting Firms

Hiring the right Merger and Acquisition (M&A) consultant is crucial for small business owners looking to sell or get acquired. Here's a checklist to consider when hiring an M&A consultant: Experience and Expertise: Look for an M&A consultant with significant experience and expertise in mergers, acquisitions, and business sales

Merger and Acquisition Consulting

Merger and Acquisition (M&A) consulting firms specialize in facilitating the sale of businesses by providing professional guidance and support throughout the entire process. Here’s how an M&A consulting firm can help you sell your business:

  1. Valuation: M&A consultants can help you determine the fair market value of your business by conducting a thorough valuation analysis. This involves assessing your company’s financial performance, assets, liabilities, market position, growth potential, and industry trends to arrive at an accurate valuation.
  2. Preparation: M&A consultants assist in preparing your business for sale by identifying areas of improvement, addressing any operational or financial weaknesses, and optimizing your company’s value proposition to attract potential buyers.
  3. Market Research: M&A consultants conduct comprehensive market research to identify potential buyers who may be interested in acquiring your business. This includes strategic buyers, financial investors, private equity firms, and other entities within your industry or related sectors.
  4. Marketing Strategy: M&A consultants develop a customized marketing strategy to promote your business to potential buyers. This may include preparing marketing materials such as confidential information memorandums (CIMs), teaser documents, and presentations highlighting the key strengths and opportunities of your business.
  5. Confidentiality Management: M&A consultants maintain strict confidentiality throughout the sale process to protect sensitive information about your business. They implement confidentiality agreements (NDAs) and manage the dissemination of information to qualified buyers in a secure and controlled manner.
  6. Negotiation Support: M&A consultants serve as your advocate during negotiations with potential buyers, helping you secure the best possible terms and conditions for the sale of your business. They leverage their expertise in deal structuring, valuation, and negotiation tactics to achieve favorable outcomes.
  7. Due Diligence Management: M&A consultants coordinate the due diligence process, which involves providing prospective buyers with access to relevant documents and information about your business. They ensure that due diligence is conducted efficiently and thoroughly to mitigate risks and address any concerns raised by buyers including gap analysis.
  8. Deal Structuring: M&A consultants assist in structuring the deal to optimize tax efficiency, minimize legal risks, and maximize value for both parties. This may involve negotiating the terms of the sale agreement, including purchase price, payment terms, earn-outs, and other deal considerations.
  9. Legal and Regulatory Compliance: M&A consultants work closely with legal advisors to ensure that the sale of your business complies with all applicable laws, regulations, and industry standards. They help navigate complex legal issues and regulatory requirements to facilitate a smooth and legally sound transaction.
  10. Transaction Management: M&A consultants oversee the entire transaction process from start to finish, managing timelines, coordinating activities between parties, and ensuring that all necessary steps are completed to successfully close the deal.
  11. Post-Sale Transition: M&A consultants provide support during the post-sale transition phase, helping you navigate the integration process if applicable and addressing any issues that may arise after the sale of your business.

Overall, M&A consulting firms play a critical role in helping business owners navigate the complexities of selling their companies, guiding them through every stage of the process to achieve a successful and profitable transaction.

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Selling A Business by Industry: Doctors Office | Pharmacy | MDE | Revenue Cycle Management

Merger and Acquisition Lawyer

A Merger and Acquisition (M&A) lawyer plays a crucial role in facilitating the sale of your business by providing legal expertise and guidance throughout the transaction process. Here’s how an M&A lawyer can help you sell your business:

  1. Structuring the Transaction: M&A lawyers assist in structuring the sale transaction to achieve your objectives and maximize value. They help determine the most suitable deal structure, whether it’s a stock sale, asset sale, merger, or other form of transaction, taking into account tax implications, liability considerations, and other relevant factors.
  2. Drafting and Negotiating Transaction Documents: M&A lawyers prepare and negotiate the various legal documents required for the sale, including the purchase agreement, sale agreement, confidentiality agreements, letters of intent, and other ancillary agreements. They ensure that the terms of the deal are accurately reflected in the legal documents and advocate for your interests during negotiations with the buyer.
  3. Due Diligence Management: M&A lawyers coordinate the due diligence process, working closely with you and your advisors to gather and organize the necessary documents and information requested by the buyer. They review due diligence requests, address any legal issues or concerns raised by the buyer, and help ensure that due diligence is conducted efficiently and thoroughly.
  4. Legal Compliance and Regulatory Matters: M&A lawyers ensure that the sale of your business complies with all applicable laws, regulations, and industry standards. They advise you on legal and regulatory requirements related to the transaction, such as securities laws, antitrust regulations, employment laws, environmental regulations, and contractual obligations.
  5. Risk Management and Mitigation: M&A lawyers identify potential legal risks and liabilities associated with the sale of your business and help develop strategies to mitigate these risks. They conduct legal due diligence on your behalf to uncover any legal issues that may impact the transaction and advise you on how to address them effectively.
  6. Negotiation Support: M&A lawyers serve as your legal advocate during negotiations with the buyer, helping you negotiate the terms of the sale agreement, purchase price, representations and warranties, indemnification provisions, and other key deal terms. They leverage their expertise in negotiation tactics and deal structuring to achieve favorable outcomes on your behalf.
  7. Closing the Deal: M&A lawyers guide you through the closing process, ensuring that all legal requirements are met, and the transaction is completed smoothly and efficiently. They coordinate the execution of closing documents, facilitate the transfer of ownership and assets, and help resolve any last-minute issues or concerns that may arise.
  8. Post-Closing Matters: M&A lawyers assist with post-closing matters, such as the transfer of licenses, permits, contracts, and other assets, as well as the resolution of any remaining contingencies or obligations. They help ensure that you fulfill your post-closing obligations under the sale agreement and that the transition of ownership is completed successfully.

Overall, an experienced M&A lawyer can provide invaluable legal advice and support throughout the sale process, helping you navigate complex legal issues, minimize risks, and achieve a successful and legally sound transaction.

Hiring a M&A Firm Checklist

Hiring the right Merger and Acquisition (M&A) consultant is crucial for small business owners looking to sell or get acquired. Here’s a checklist to consider when hiring an M&A consultant:

  1. Experience and Expertise: Look for an M&A consultant with significant experience and expertise in mergers, acquisitions, and business sales, particularly within your industry or niche.
  2. Reputation and Track Record: Research the consultant’s reputation and track record of successful transactions. Seek references and testimonials from past clients to gauge their satisfaction with the consultant’s services.
  3. Industry Knowledge: Choose a consultant who has a deep understanding of your industry, market dynamics, and competitive landscape. Industry-specific knowledge can be invaluable in identifying potential buyers and maximizing value.
  4. Services Offered: Determine the range of services offered by the consultant, including valuation, marketing, negotiation, due diligence, and transaction management. Ensure that their services align with your needs and objectives.
  5. Customized Approach: Look for a consultant who offers a customized approach tailored to your specific circumstances and goals. Avoid one-size-fits-all solutions and seek personalized advice and strategies.
  6. Network and Connections: Assess the consultant’s network of contacts and connections within the industry, including potential buyers, investors, lenders, and other stakeholders. A robust network can help facilitate the transaction process and identify suitable opportunities.
  7. Communication and Transparency: Choose a consultant who communicates openly and transparently, keeping you informed at every stage of the process. Clear communication is essential for building trust and maintaining a positive relationship.
  8. Fee Structure: Understand the consultant’s fee structure, including upfront fees, retainer fees, success fees, and any additional costs or expenses. Ensure that the fees are reasonable and competitive relative to the value of the services provided.
  9. References and Testimonials: Request references and testimonials from past clients to assess the consultant’s reputation, reliability, and professionalism. Contacting references directly can provide valuable insights into their experience working with the consultant.
  10. Credentials and Certifications: Verify the consultant’s credentials, certifications, and affiliations with professional organizations such as the Association for Corporate Growth (ACG), International Business Brokers Association (IBBA), or M&A Advisor.
  11. Confidentiality and Discretion: Ensure that the consultant prioritizes confidentiality and discretion throughout the transaction process, especially when disclosing sensitive information about your business to potential buyers.
  12. Conflict of Interest: Clarify any potential conflicts of interest that may arise, such as representing both buyers and sellers simultaneously or having relationships with competing businesses. Ensure that the consultant acts in your best interests at all times.
  13. Compatibility and Chemistry: Assess the compatibility and chemistry between you and the consultant. A strong working relationship built on trust, respect, and mutual understanding is essential for a successful partnership.
  14. Timeline and Deadlines: Discuss the expected timeline and deadlines for the transaction process, including key milestones such as marketing, due diligence, negotiation, and closing. Ensure that the consultant can meet your timeline requirements and deadlines.
  15. Exit Strategy Planning: Inquire about the consultant’s approach to exit strategy planning and succession planning, particularly if you’re looking to sell your business. A strategic advisor can help you prepare your business for sale and maximize its value.

By considering these factors and conducting thorough due diligence, you can select an M&A consultant who is well-equipped to guide you through the sale or acquisition process and help you achieve your goals.

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Selling A Business by Industry:  Revenue Cycle Management | Water Treatment | Medical Equipment | Insurance | Facility Service Provider

 

Categories
Mergers & Acquisition Negotiating Negotiations

Business Broker Near Me

Business Broker Near Me
Find a Business Broker Near Me

There are several ways to sell your business or hire a business broker to sell my business, and we are going to review a few in this article and provide checklists and action steps to help you navigate one of the happiest times of your BUSINESS CAREER.

For Sale Buy Owner
Hire A Business Broker
Strategic Acquisition or Bolt-on
Wrk With a Buy Side Firm
Sell to a Smart Money Buyer

Sell your Business using a buy side firm like venture intro offered by c-suite network jeff cline

Sell your Business Own Your Own

Selling a business by the owner, often referred to as “for sale by owner” (FSBO), can present several challenges and risks that might make it less appealing compared to using professional services such as business brokers, M&A advisors, or investment bankers. Here are key reasons why selling your business on your own might not be the best approach: (it is best to have a friend that has had a successful exit to come along side you with this journey if you choose it it the right path for yo)

1. Lack of Market Knowledge

  • Challenge: Owners may not have a comprehensive understanding of the current market conditions, including the appropriate valuation for their business and the best marketing strategies to reach potential buyers.
  • Risk: This could result in undervaluing the business or failing to find a buyer altogether.

2. Limited Access to Buyers

  • Challenge: Owners typically have a limited network of potential buyers, which can significantly reduce the chances of finding the right buyer for their business.
  • Risk: This limited exposure may extend the time it takes to sell the business or may result in not selling at all.

3. Negotiation Challenges

  • Challenge: Business owners are often emotionally attached to their businesses, which can make objective negotiation difficult.
  • Risk: Emotional involvement may lead to poor negotiation outcomes, such as accepting lower offers or terms that are not in the owner’s best interest.

4. Complexity of the Sales Process

  • Challenge: The process of selling a business involves various complex steps, including business valuation, preparation of a detailed information memorandum, due diligence, and legal documentation.
  • Risk: Mistakes in any of these areas can derail the sale process, lead to legal liabilities, or result in financial losses.

5. Time and Effort

  • Challenge: Selling a business is time-consuming and can distract the owner from running the business, potentially affecting its performance and value.
  • Risk: The business may suffer during the sales process, decreasing its attractiveness to buyers and potentially reducing the sale price.

6. Confidentiality Issues

  • Challenge: Maintaining confidentiality during the sales process is crucial to prevent negative reactions from employees, customers, suppliers, and competitors.
  • Risk: Owners may struggle to market the business effectively while also keeping the sale confidential, risking premature disclosure that could harm the business.

7. Legal and Financial Pitfalls

  • Challenge: There are numerous legal and financial details involved in selling a business, requiring expertise in areas like contract law, taxation, and regulatory compliance.
  • Risk: Overlooking important details can lead to legal disputes, unexpected tax liabilities, or other costly issues after the sale.

8. Emotional Decision-Making

  • Challenge: Owners may make decisions based on their emotional attachment to the business rather than on what is financially or strategically best.
  • Risk: This can lead to rejecting suitable offers or holding out for unrealistic valuations.

Sell your Business using a buy side firm like venture intro offered by c-suite network jeff cline

Business Broker

A business broker is a professional who assists in the buying and selling of businesses. The role of a business broker is multifaceted, encompassing elements of sales, marketing, finance, negotiation, and project management. They act as intermediaries between sellers and buyers of small to medium-sized businesses, facilitating transactions to ensure a smooth transfer of ownership. This role requires a combination of skills and knowledge to successfully navigate the complexities of business sales.

Key Responsibilities

  1. Valuation of Businesses: Assess and determine the value of a business based on its financial performance, assets, and market position.
  2. Marketing and Advertising: Develop and implement strategies to market businesses for sale, including preparing sales materials and listing businesses on relevant platforms.
  3. Buyer Qualification: Screen potential buyers to ensure they have the financial capacity and serious intent to purchase a business.
  4. Negotiation: Facilitate negotiations between buyers and sellers, acting as a mediator to resolve differences and reach a mutually beneficial agreement.
  5. Due Diligence Coordination: Assist in the due diligence process, ensuring that buyers have access to necessary financial records and information to evaluate the business accurately.
  6. Closing Transactions: Coordinate the closing process, including ensuring that all legal and financial documents are prepared, signed, and filed appropriately.
  7. Consultation and Advice: Provide clients with advice on the sale process, including pricing strategies, market trends, and legal requirements.

Skills and Qualifications

  • Educational Background: While a specific degree is not always required, backgrounds in business, finance, or a related field can be beneficial.
  • Experience: Prior experience in business sales, finance, or a related field is valuable. Understanding of small business operations and financial principles is crucial.
  • Licensing and Certification: Requirements vary by location, but many regions require business brokers to have a real estate license. Additional certifications from professional associations, like the International Business Brokers Association (IBBA), can enhance credibility.
  • Communication Skills: Strong verbal and written communication skills are essential for negotiating deals, marketing businesses, and advising clients.
  • Analytical Skills: Ability to analyze financial statements, market data, and business models to accurately value businesses and advise clients.
  • Ethical Standards: High ethical standards and integrity are critical, as brokers must handle confidential information and ensure fair dealings.

Hiring a Business Broker Check-list

Choosing the right business broker is essential, and it will be more than just the checklist…it will be a lot like dating. Finding the right one will not only help you get the EXIT COMPLETE but make your life/stress less.

Hiring a business broker check-list:

When listing your business for sale with a business broker, it’s crucial to ask the right questions to ensure they’re a good fit for your needs and to understand the process they will follow to sell your business. Here are 25 important questions to consider:

  1. Experience and Background
    • What is your experience in selling businesses similar to mine?
    • How long have you been a business broker?
  2. Credentials and Licensing
    • Do you have any professional certifications or licenses relevant to business brokerage?
    • Are you a member of any professional business broker associations?
  3. Sales Process
    • Can you walk me through your sales process from listing to closing?
    • How do you determine the valuation of a business?
  4. Marketing and Advertising
    • How will you market my business for sale?
    • What kind of advertising materials do you create, and can I see samples?
    • How do you maintain confidentiality while marketing the business?
  5. Buyer Qualification
    • How do you qualify potential buyers?
    • What steps do you take to ensure a buyer has the financial capacity to purchase my business?
  6. Communication and Reporting
    • How often will I receive updates on the sale process?
    • What kind of reporting can I expect to receive?
  7. Negotiation and Offers
    • How are offers presented and negotiated?
    • Will you assist in negotiating the terms of the sale?
  8. Fees and Contracts
    • What are your fees, and how are they structured?
    • Is there an exclusive listing period, and what happens if my business does not sell during that time?
    • Can I see a sample listing agreement?
  9. Closing Process
    • What is your role in the closing process?
    • Can you provide references from past clients?
  10. Post-Sale Support
    • What kind of support can I expect after the sale is completed?
  11. Success Rate and References
    • What is your success rate in selling businesses?
    • Can you provide references from past clients whose businesses you’ve sold?
  12. Market Analysis
    • How do you conduct market analysis for businesses like mine?
    • What current trends in my industry could affect the sale of my business?
  13. Buyer Network
    • Do you have a network of potential buyers for my type of business?
  14. Challenges and Solutions
    • What are the most common challenges in selling a business like mine, and how do you address them?
  15. Legal and Ethical Standards
    • How do you ensure compliance with legal and ethical standards in the sale process?
  16. Technology and Tools
    • What technology and tools do you use to facilitate the business sale process?
  17. Partnerships and Alliances
    • Do you work with other brokers or professionals to help sell the business?
  18. Exit Strategy Planning
    • Can you assist with exit strategy planning if I don’t have one in place?
  19. Confidentiality Agreement
    • How do you ensure that potential buyers sign a confidentiality agreement before receiving detailed information about my business?
  20. Post-Sale Non-Compete Agreements
    • Do you assist in negotiating post-sale non-compete agreements?
  21. Inventory and Asset Handling
    • How are inventory and other assets handled in the sale?
  22. Employee Retention
    • How do you handle communication with employees about the sale?
  23. Real Estate and Lease Agreements
    • How are real estate and lease agreements handled in the sale?
  24. After-Sale Transition
    • What support is available for the transition to the new owner?
  25. Feedback and Improvement
    • How do you handle feedback from sellers about the sales process?

Asking these questions can help you gauge the broker’s expertise, understand their process, and set the right expectations for the sale of your business.

Sell your Business using a buy side firm like venture intro offered by c-suite network jeff cline

Strategic Acquisition or Bolt-on

A strategic acquisition or bolt-on acquisition refers to the purchase of a company by another company that is looking to strengthen its existing operations, expand its market reach, or acquire specific assets, technologies, or expertise. This type of acquisition is typically pursued by companies seeking to grow strategically and gain competitive advantages in their industry.

Strategic Acquisition

  • Definition: In a strategic acquisition, a larger company acquires a smaller company to gain access to new markets, products, technologies, or synergies that complement its existing business.
  • Purpose: The primary goal is to enhance the acquirer’s strategic position and long-term profitability, rather than just seeking immediate financial gain.

Bolt-on Acquisition

  • Definition: A bolt-on acquisition occurs when a company is acquired and then integrated into an existing division or subsidiary of the acquiring company. It’s often smaller in scale compared to the acquiring company’s size.
  • Purpose: The aim is to add specific capabilities or products, expand geographically, or achieve cost synergies, thereby strengthening the acquirer’s existing business units.

Why a Strategic or Bolt-on Acquisition Might Be Preferable to Selling Outright

  1. Synergy Realization: Acquisitions can create synergies that may not be achievable through organic growth alone, such as cost reductions, improved efficiency, or enhanced market presence.
  2. Expansion Opportunities: Through a strategic acquisition, companies can quickly enter new markets or segments, leveraging the acquired company’s existing customer base and distribution channels.
  3. Access to Technologies and Expertise: Acquiring a company with unique technologies, patents, or specialized expertise can provide a competitive edge and accelerate innovation within the acquiring company.
  4. Economies of Scale: Bolt-on acquisitions allow companies to achieve economies of scale by expanding their operations, which can lead to lower costs per unit and improved profitability.
  5. Risk Diversification: Acquiring businesses in different regions or sectors can help diversify risk, reducing the impact of industry-specific downturns on the overall business.
  6. Faster Growth: Strategic acquisitions can be a quicker pathway to growth compared to the slower process of building business capabilities from scratch.
  7. Enhanced Value: Companies may find that being part of a larger, more diverse organization enhances their value and provides stability, resources, and opportunities for growth that were not previously available.
  8. Continuity and Integration: Unlike selling outright, which might lead to significant changes or the dissolution of the original business, a bolt-on acquisition often maintains some level of continuity, and the acquired company can benefit from the resources and support of the larger entity.

For business owners, considering a strategic or bolt-on acquisition as an alternative to selling outright can be a way to ensure that their company continues to grow and thrive under the umbrella of a larger organization. This approach can also offer financial rewards, strategic advantages, and a way to safeguard the company’s legacy. It requires careful consideration of the strategic fit, cultural alignment, and long-term goals of both the acquiring and acquired companies.

Smart Money

“Smart money” refers to investments made by individuals or entities that possess expert knowledge and deep understanding of a particular industry or sector. These investors not only bring capital to a business but also valuable industry insights, experience, strategic relationships, and operational expertise that can significantly contribute to the growth and success of the company. Smart money investors are often contrasted with “passive investors” who provide capital but do not add any additional value in terms of industry knowledge or business acumen.

Benefits of Selling to Smart Money Investors:

  1. Industry Expertise: Smart money investors have a thorough understanding of the industry in which they invest, including the market dynamics, competitive landscape, regulatory environment, and emerging trends. This expertise can be invaluable in navigating challenges and seizing opportunities.
  2. Strategic Guidance: These investors can offer strategic guidance and mentorship to help the business scale, improve operational efficiencies, and enhance its market position.
  3. Networking Opportunities: Smart money investors often have extensive networks within the industry, including potential customers, partners, suppliers, and even future hires. Access to this network can open new doors and accelerate growth.
  4. Operational Support: Beyond financial investment, smart money can provide operational support in areas such as marketing, human resources, technology, and finance, leveraging their own resources and experience to improve business operations.
  5. Credibility and Reputation: Association with respected smart money investors can enhance the company’s credibility in the market, making it easier to attract additional investment, customers, and partners.

Selling to a Company with a Buy-Side Group Having an Affinity to Your Business:

A buy-side group that shows an affinity for your business implies that they are not just interested in the financial investment but also bring industry-specific knowledge, strategic interest, and a commitment to the long-term success of your business. Selling to such a group or company has several advantages:

  • Aligned Interests: These investors are more likely to understand the value proposition of your business and be aligned with your vision and goals, leading to a smoother partnership and shared objectives.
  • Strategic Growth: With their industry insight and strategic resources, these investors can help identify new growth avenues, optimize existing operations, and navigate market challenges effectively.
  • Higher Valuation: Investors with a strong understanding of your industry are better positioned to appreciate the true value of your business, potentially leading to a higher valuation at the time of sale.
  • Long-term Commitment: Such investors are typically interested in the long-term potential of the business rather than seeking quick returns, providing stability and continuity for the company, its employees, and customers.

In summary, selling to smart money investors or a company with a buy-side group that has an affinity for your business can offer significant benefits beyond mere financial investment. It can provide strategic advantages, operational support, and access to networks that are crucial for scaling the business and achieving long-term success.

Sell your Business using a buy side firm like venture intro offered by c-suite network jeff cline

Categories
Accounting Mergers & Acquisition Negotiating

Business Valuation Calculator

Types of Business Valuations

Method Description
Discounted Cash Flow (DCF) Future cash flows are discounted back to present value
Comparable Company Analysis Comparing valuation metrics with similar businesses
Market Capitalization Stock price multiplied by total number of shares
Book Value Net asset value from the balance sheet
Liquidation Value Value of assets if sold individually
Earnings Multiplier Earnings multiplied by an industry-specific factor
Replacement Cost Cost to replace all assets
Revenue Multiple Revenue multiplied by an industry-specific factor
Price-to-Earnings (P/E) Ratio Market value per share divided by earnings per share

Why Business Valuations Are Important

  • Investor Confidence: A solid business valuation can instill confidence among investors, potentially leading to increased investment.
  • Strategic Planning: Understanding the value of a business helps in making informed decisions for future growth and restructuring.
  • Mergers & Acquisitions: Accurate valuation is crucial for negotiating deals and understanding the fair market value of a business.
  • Succession Planning: Valuations are critical for understanding the value of the business for potential succession or sale.
  • Access to Funding: Lenders or investors often require a business valuation to assess the risk associated with the business.
  • Tax Purposes: Understanding the value of a business can be essential for various tax-related transactions and compliance.
  • Employee Stock Ownership Plans (ESOPs): Valuation helps in setting the price for stock when offering stock options to employees.
  • Litigation and Dispute Resolution: In legal cases like divorce or partnership disputes, a valuation can help in reaching a fair settlement.
  • Market Positioning: Knowing the value of the business relative to competitors provides insights into market positioning and competitive advantage.

Having an accurate business valuation is crucial for various aspects of managing, selling, or investing in a business. It provides a comprehensive view of a company’s health, growth potential, and overall viability can be as simple as a business valuation calculator in excel to as complex as a professional valuation by firm or expert!

Business valuation services near me?

If you are looking for an expert, C-Suite Network has some of the best! Visit:

https://pages.c-suitenetwork.com/valuation

 

 

Categories
Best Practices Economics Negotiating

How much should I pay myself?

How much should I pay myself?

When people go into business for themselves as a Sole Proprietor, they usually comingle the business’ funds. Meaning they are using Business funds for personal items and personal funds for business items. Sole Prop is the easiest way to start doing business, however, if you choose to setup a Corporation or an LLC, these habits need to change. You and the company are no longer the same. The two of you become 2 separate individuals. The company’s money is not your money, and your money is not the company’s money.
So, the question usually after setting up the Corporation or LLC is: How do I get the money out of the company? How much should I be paying myself? What can the company cover?
The Answer is: You take only what you need, to cover Food, Clothing, Shelter, Personal Entertainment, and Insurance. Let the company pick up the rest. The company should be covering things like, Business Trips, Cell Phones, Internet, Home office expenses, etc. You will never take vacations again. Vacations are not tax deductible, however, business trips are. You will need to make sure that everything is documented. I will discuss what your company should be covering in another article.
Now, usually in the 1st or 2nd years of operation, a business owner has no idea what the company is going to make, so they might take money out as an owner draw rather than a salary. However, around the 3-year mark, the IRS will figure that you have some idea as to how much the company will be making and require you to start taking some sort of salary out of the company.
In addition, if you want your company to cover health insurance, contribute to a qualified retirement plan such as an IRA or SoloK, you will need to be drawing a salary from the company. The contributions will be withdrawn by the payroll company out of each paycheck.
Now you might be thinking, if I need additional money from the company, how do I take it out. Well, if you have an “S” elected Corporation or LLC, you will receive distributions on a monthly, quarterly or annual basis. This will add to your income but won’t be subject to withholdings or self-employment taxes. If your Corporation or LLC is taxed as a “C” elected company, you can either take a dividend which the Corporation has already paid the taxes and now you the individual will also pay taxes. This is commonly referred to as double taxation.
However, your company could loan the money to you personally, which is not considered taxable income. You would then pay the company back out of the wages you take. This can be used as an Asset Protection mechanism. The company, just like any other lender could place a lien against whatever asset you may be purchasing. This will protect the asset from any liability that might affect you personally. This does require a formal written promissory note between you and the company to perfect the process.