Selling your labels business

In today’s marketplace, we hear about premier companies getting sold at unbelievably high prices and those that could be sold only to someone who is also willing to buy a bridge. However, as it is with most polar-opposite situations, the truth lies somewhere in between. Any company with realistic expectations and a good management team can get justifiable offers for its business.

Great companies certainly are apt to be getting great deals, but probably not as tremendous as what you’ve heard. If you focus only on the “sell price,” you misunderstand the true offer value. There are many other issues besides sell price to consider. Financing terms, asset transfers, debt assumption, earnout arrangements, provisions for remaining key employees, and more all factor into the value and attractiveness (or unattractiveness) of any contract. These issues can be significant.