Mergers & Acquisitions

M&A Talk Podcast

M&A Talk is the #1 podcast on mergers & acquisitions. At M&A Talk we bring you exclusive interviews with experts in business sales, valuations, mergers and acquisitions, and more. We talk to the most experienced professionals in the industry to uncover their secrets.

Home Podcast The Basics of Selling a Middle Market Company

The Basics of Selling a Middle Market Company

The Basics of Selling a Middle Market Company

Robert Brighton

M&A Attorney (Upper Middle-Market)

Rob Brighton joins us to talk about key considerations for selling your small to medium-sized business. Rob is a corporate transactional attorney, with experience in both building a company and selling it. He discusses key legal considerations when selling a business,  corporate and financial structures including recaps, rollovers and equity, the use of earnouts in M&A transactions, and due diligence. We also discuss the importance of preparing for a sale and understanding the true costs involved in closing the transaction.

Guest Profile

Rob is a corporate transactional attorney who concentrates his practice in the areas of securities, corporate finance, mergers, acquisitions and divestitures, private equity, and venture capital. Admitted to the Florida and New York Bars, he serves on various business law-related committees of the American Bar Association, as well as the Florida and New York Bars, including Committees on Legal Opinions, Federal Securities Regulation, Corporate Governance, and Small Business.

Rob is a former member of the board of directors of the Association for Corporate Growth Global (ACG) and also served on its audit committee. In addition, he is a past President and current member of the Board of Directors of the South Florida Chapter of ACG and has served four terms as Chairman of the Florida ACG Capital Connection (2006, 2011, 2015, and 2019). Rob has also served as a director of the Florida Venture Forum and is actively involved in the SFNet (Commercial Finance Association), the Turnaround Management Association, the Gold Coast Venture Forum, and the South Florida Technology Alliance, among other business development organizations.

Rob frequently writes and speaks on topics in the areas of corporate and securities law.

Topics Covered

  •  Is an IPO an exit? [3:15]
  • Is there crossover between securities and M&A attorneys? [4:00]
  • What are key legal considerations you should take into account before selling your company? [4:35]
  • How does a recapitalization work? [6:45]
  • What is a rollover? How is equity rolled over? [9:25]
  • How often are rollovers used by private equity groups and strategic buyers? [12:15]
  • How should phantom equity be used? [13:25]
  • How should earnouts be used in M&A transactions? [13:45]
  • Tips for performing pre-sale legal due diligence [16:10]
  • How long does it take to prepare a company for sale from a legal standpoint, and how far in advance should the preparation work be done? [19:15]
  • How many billable hours does it take to prepare a company for sale? [21:55]
  • How does a purchase price adjustment work? [27:35]
  • How much does representations and warranties (R&W) insurance cost? [34:55]
  • How thoroughly does the underwriter perform due diligence for R&W insurance? [37:00]

Learn More

Acquired

Acquired

The Art of Selling a Business With $10 Million to $100 Million in Revenue

Written by Jacob Orosz, President of Morgan & Westfield

For a business to sell for what it’s really worth – or even more – you need to properly prepare. But too many entrepreneurs put off planning the sale of their business until the last moment. Acquired – The Art of Selling a Business With $10 Million to $100 Million in Revenue will help you prepare your business for sale and walk you through the sales process, dodging the pitfalls along the way. With a significant amount of your wealth tied up in your business, planning your exit is one of the most critical initiatives you’ll undertake.

Read more