Episode Details

Price and Terms of the Deal Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In negotiating the M&A transaction both price and terms will be discussed. While the top-line buyout number is the main focus, the underlying terms should also be considered carefully. Here’s a list of terms to review: Payment amount -- how much and when will the payout occur? Who gets paid -- payment goes to those on the cap table but there may be other factors at play. Payment structure -- how you structure the deal with regard to taxes and the legal entity of the company is a key factor to consider. Employee impact -- what is the plan for integrating the companies and how will it impact the employees? Customer impact -- in the event the buyout is to shut down a competitor then consider how it will impact those customers. Earnouts -- In the event of an earnout, the payment could be higher if sales targets are met. The top-level price is important, but the underlying terms often determine if it is a good deal or not.   Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let’s go startup something today. _______________________________________________________ For more episodes from Investor Connect, please visit the site at:   Check out our other podcasts here:   For Investors check out:   For Startups check out:   For eGuides check out:   For upcoming Events, check out    For Feedback please contact info@tencapital.group    Please , share, and leave a review. Music courtesy of .