#mergersandacquisitions #corporatelaw #business

If you're selling a business, you really only have two categories of how to market that business selling it via an auction process in which all potential buyers bid, are selected, and placed on the same processing timeline, or a direct negotiation where you seek out buyers and negotiate a deal with them directly.

Which model is best for you depends on the valuation of your business, your industry, the demand for your business, and a multitude of other factors. But, generally speaking, you won't see auctions in the Main Street or lowermiddle market (less than $510 million).

That's primarily driven by the buyers in that end of the market as well as the caveats of choosing an auction process should the deal fall through. It's uncommon to see enough demand for a business worth $1 million to use as leverage for a higher asking price, which is the real benefit to an auction model.

For smaller businesses, it's much more beneficial to list your business either with a business broker or M&A advisor on a site like bizbuysell and deal with potential buyers directly.

For more on the considerations of each model, watch the video.

Here's a quick rundown in case you want to jump ahead:
0:32 What is an auction?
2:02 Considerations of an auction model
5:52 What is a direct negotiated deal?
6:50 Considerations of a direct negotiated deal

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Have questions? Book a call, and talk to Brett today:
https://clarity.fm/brettcenkus'>https://clarity.fm/brettcenkus

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You can reach Brett through:

https://clarity.fm/brettcenkus'>https://clarity.fm/brettcenkus
  / brettcenkus  
  / bcenkus  
https://www.cenkuslaw.com
https://braatenwoods.com
https://mergerresources.com


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Brett A. Cenkus has 20+ years of experience in business law, finance, and entrepreneurship. Through Cenkus Law, PC, he provides advice and services for mergers & acquisitions (M&A), securities offerings, founders’ agreements, and other general business law issues.

Through Braaten Woods, LLC, Brett helps business owners in the lower middle market ($2MM $25MM) position themselves for sale, find buyers, negotiate, and close M&A deals.

Brett also maintains mergerresources.com, a site packed with free articles, videos, checklists, deal diagrams, template contracts, and other tools to help pass M&A knowledge to others.

Brett regularly consults with entrepreneurs and invests his own capital as an angel investor.

From 20102013, Brett served as Chief Legal Counsel of a publiclytraded international oilfield services company. From 2001 to 2006, he and a partner founded and built Paragon Residential Mortgage. Bridge Investments acquired Paragon in 2006.

Brett holds a Juris Doctorate from Harvard Law School and a Bachelor of Arts degree in Economics from Messiah College in Grantham, Pennsylvania.

Brett lives in Austin with his wife, Cathryn, and two children. He enjoys reading, squash, classic movies, great food and wine, and the New England Patriots.