The Importance of a Good First Impression
When it comes to maximizing valuation in an M&A transaction, Blank Rome Partner, Co-Chair, Corporate, M&A and Securities Practice Group Louis Rappaport says sellers only have one chance to make a good first impression. Sellers need to prepare in a variety of areas to increase their odds of landing the best deal, one of which is financial.
"You might be surprised how many entrepreneurs don't have a perfect command of their capitalization table," Rappaport says. "I've seen both from the buy-side and sell-side what I call the 'promises, promises syndrome,' where CEOs have told key employees that they are going to be getting equity or options or profits interests or phantom equity, and we get the cap table and none of that is shown there."
That, he said during the Philadelphia Smart Business Dealmakers Conference, creates a number of questions, such as how to execute in that scenario, how to manage expectations and how to get the right tax outcome.
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"The Importance of a Good First Impression," by Adam Burroughs was published in Smart Business Dealmakers on April 21, 2023.