Published Date: 3-Dec-2018
“One of the biggest mistakes owners make in selling their company is being lured into a proprietary deal. Acquirers land a proprietary or "prop" deal when they convince owners to sell their businesses without creating a competitive marketplace. Acquirers running a proprietary deal know they don't have any competition and tend to make weaker offers with more punitive terms because they know nobody else is bidding.” Extract from CROWE - The biggest mistake owners make when selling
A closed approach like this means that there is no possibility of competitive bidding for the business. While a proprietary deal creates an ideal space for the buyer and a relatively easy life for the business advisors, the business owner is the ultimate loser. To avoid this, CIEX have members who can provide access to a marketplace where your business is offered complete anonymity.
CIEX has created a network of accountants who are M&A and Corporate Finance specialists and all of whom are qualified members of established accountancy firms. If your accountant is a CIEX member they can anonymously present your company to multiple interested parties while providing the confidentiality you need to carry on with your day to day business activities.
CIEX’s advice is always to talk to one of our experienced member accountants before entering into any discussion with a potential buyer (or investor).
CIEX, M&A, SELLING YOUR BUSINESS, PROPRIETARY DEAL
Selling Your Business – Where Do You Start?
Proactivity for Corporate Finance Teams – Becoming a buyer for your clients
Accountancy Firms on Pivoting from Reactive to Proactive