Insights by Candor Advisors

In this video, M&A advisor Kirk Michie explains why a sell-side quality of earnings report can be one of the best investments a founder makes before selling a business.You’ll learn:What a sell-side quality of earnings report doesWhy buyers conduct their own buy-side QoEHow unclear financials can distract from your company’s valueWhy EBITDA add-backs must be supportedHow net working capital can affect a transactionWhen to begin preparing your financials for a saleA sell-side QoE can help address financial questions before buyers raise them. That allows you to spend more time explaining what makes your company valuable—and less time defending your books.

Why do buyers care about recurring revenue—even when the business is not a software company?The answer is risk. Contracted revenue can make future sales easier to predict, give buyers more confidence, and make an acquisition easier to finance.In this video, M&A advisor Kirk Michie explains:What recurring revenue meansThe difference between MRR and ARRWhy predictable revenue reduces buyer riskHow project-based revenue can create uncertaintyWhy customer and revenue churn matterHow recurring revenue can affect valuation multiples

Preparing to sell a business often begins long before an investment banker starts contacting potential buyers. Effective business exit planning may require six to eighteen months of internal preparation before a company formally goes to market. Founders can use that time to professionalize financial reporting, reduce customer concentration, organize supplier and partner contracts, prepare a data room, and identify growth opportunities that may make the company more attractive to buyers. A sell-side quality of earnings analysis and stronger documentation can also help buyers better understand the company’s historical performance and transferable economics. Buyers consider more than a company’s past results when determining valuation. They are also evaluating the future opportunities available after the acquisition. According to M&A advisor Kirk Michie, preparing those elements before beginning the sale process can help founders pursue a higher valuation, stronger deal terms, and greater control over their legacy after the transaction.

Selling a company is personal, so buyer questions can easily feel like criticism of you and the business you built. As requests multiply and decisions take longer, understandable frustration can begin to threaten the deal. In this video, M&A advisor Kirk Michie explains how the right transaction advisor can serve as a shield, guide your responses, and help you stay focused on the outcome. Watch the video to learn why managing emotion is an essential part of a successful M&A process.

Many founders focus on negotiating the purchase price, but the structure of the transaction can be just as important. Whether your business is sold as a stock sale or an asset sale may affect both your tax bill and the buyer’s economics. In this video, Kirk Michie explains why these conversations should begin before the Letter of Intent is signed and how the right planning can create a better outcome for both parties. Watch the video below to learn why this often-overlooked topic deserves your attention.

You’ve probably heard the term “silver tsunami” before. While it’s often associated with retirement and wealth transfer, there’s another side of the story that’s especially important for business owners.Over the next decade, millions of founders will look to sell their businesses as they transition into retirement. In this short video, Kirk explains what that trend means for business owners and why waiting until you’re ready to retire can be a costly mistake.Watch the video to learn why exit planning should start years before a sale.

When business owners think about selling their company, most of their attention goes to valuation and purchase price. But one overlooked deal term can create surprises after closing.In this short video, Kirk Michie explains what a net working capital peg is, why buyers require it, and how it can affect the amount of money you ultimately receive from a sale.Before you sign a letter of intent, make sure you understand how this provision works and what it could mean for your transaction.

Taxes can dramatically change what founders actually keep after selling a business. In this video, Kirk Michie introduces Section 1202, also known as the Qualified Small Business Stock (QSBS) exemption, and explains why founders should understand these rules long before going to market.

Many founders are surprised to learn that part of their sale proceeds may be tied up after closing. In this video, Kirk Michie explains how Rep & Warranty Insurance can sometimes reduce escrow requirements and help sellers keep more cash upfront.

Most founders spend the majority of a sale process focused on valuation, deal terms, and due diligence. But many transactions also include a lesser-known component called a Transition Services Agreement, or TSA. In this video, Kirk Michie explains what a TSA is, why buyers use them, and how they can affect a founder’s responsibilities after closing.