Sell My CompanyResources

M&A Resources for Business Owners

The M&A process comes with its own language. These guides explain the terms, mechanics, and decisions that matter when you are considering a sale, responding to an acquisition offer, preparing for buyer diligence, or evaluating shareholder liquidity alternatives.

What every founder should understand before a transaction

Most founders sell a business once. That means the process — the terminology, the mechanics, the negotiation dynamics — is entirely new when it matters most. Buyers and their advisers will use this language fluently, in time-pressured situations where the gap in knowledge can cost you real money.

Understanding the mechanics of a transaction does not just help you follow the conversation — it protects value. Knowing what normalized EBITDA means, how earnout structures work, what a quality of earnings report will scrutinize, and how working capital is calculated gives you the foundation to negotiate as an informed counterparty rather than deferring to whoever holds the pen.

The library also covers practical decisions that owners face before any formal process begins: whether an unsolicited offer is credible, how to choose an M&A advisor, how to prepare a data room, how to compare strategic and private equity buyers, and how deal structure changes the cash, risk, control, and future upside for shareholders.

M&A guides and practical explainers

34 guides covering the concepts, preparation steps, buyer dynamics, financing alternatives, and deal terms that matter most in a mid-market transaction. Each guide is written for owners, shareholders, and management teams who need practical context before making decisions with real economic consequences.

Core M&A Concepts

Foundational guides to valuation, diligence, LOIs, working capital, earnouts, transaction documents, and the sale process.

What is EBITDA — and Why It Matters in M&A

EBITDA — Earnings Before Interest, Tax, Depreciation, and Amortisation — is the most commonly used metric to value businesses in mid-market M&A. If you are considering selling your company, understanding what EBITDA is, why buyers use it, and what normalised EBITDA means is essential preparation before entering any M&A process.

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Quality of Earnings: What It Is and Why It Matters

A Quality of Earnings (QoE) report is an independent financial analysis commissioned to verify and validate the EBITDA of a business being sold. It is a standard requirement in US mid-market M&A and increasingly common in European transactions. For sellers, understanding what a QoE involves — and whether to commission a sell-side version before going to market — is one of the most important process decisions.

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What is an Earnout? M&A Earnout Structures Explained

An earnout is a deal structure in which part of the purchase price is contingent on the business achieving specified financial or operational targets after closing. For sellers, earnouts are one of the most misunderstood and sometimes painful features of M&A — because they look like additional consideration at the time of signing, but can be extremely difficult to achieve once the business is under new ownership.

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What is a Letter of Intent (LOI) in M&A?

A Letter of Intent (LOI) — also called a Term Sheet, Heads of Terms, or Memorandum of Understanding depending on the jurisdiction — is the document that sets out the principal commercial terms of a proposed M&A transaction before formal documentation begins. Signing an LOI is a significant milestone in any sale process, but it is also where sellers who are not properly advised often make their most costly mistakes.

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Asset Sale vs. Stock Sale: What Business Owners Need to Know

When selling a business, one of the most consequential structural decisions is whether the transaction is structured as an asset sale or a stock (share) sale. The choice has significant tax implications for both buyer and seller, affects how liabilities are transferred, and is a common source of negotiation in mid-market deals. Most sellers prefer stock sales; most buyers prefer asset sales — for well-defined reasons.

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What is Working Capital in M&A?

Working capital is one of the most frequently misunderstood elements of M&A deal economics — and one of the most common sources of post-signing surprises for sellers. The working capital adjustment mechanism in a sale transaction can result in the seller receiving significantly more or less than the headline enterprise value, depending on the working capital balance at closing and how the peg is negotiated.

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Representation and Warranty Insurance in M&A

Representation and Warranty Insurance (R&W insurance in the US; W&I — Warranty and Indemnity insurance — in the UK and Europe) has become a standard feature of mid-market M&A transactions. It transfers the financial risk of warranty claims from the seller (or buyer) to an insurance company, fundamentally changing the risk profile of M&A deals for both parties.

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The M&A Sale Process: A Step-by-Step Guide for Business Owners

Most founders sell one business in their lifetime. The M&A sale process is unfamiliar, high-stakes, and runs for months while you are still trying to run your company. Understanding how it works — what happens at each stage, who does what, and where the key decisions lie — is the most important preparation you can do before engaging any advisor or approaching any buyer.

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What is a CIM? The Confidential Information Memorandum Explained

The Confidential Information Memorandum (CIM) — also called an information memorandum, offering memorandum, or management information presentation — is the primary marketing document in an M&A sale process. It is the detailed document that potential buyers use to understand your business, evaluate their interest, and form a preliminary view on valuation. The quality of the CIM is one of the most significant determinants of initial buyer engagement in any process.

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M&A Multiples: What Determines What Your Business Is Worth

M&A multiples — the EBITDA multiple applied to value your business — are one of the most-searched topics for founders thinking about a sale. The honest answer is that there is no single multiple that applies to your business. Multiples are a range, not a number, and where your business lands within that range depends on multiple factors that interact in ways that no table can capture. What we can tell you is what the key drivers are — and why the same EBITDA can produce very different values in different hands.

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Ready to discuss your business?

Guides and glossaries are preparation. The real conversation — about your specific business, what it is worth in the current market, and what a sale process would look like — is a different one. We offer an initial consultation at no charge and without obligation.