M&A Unplugged

In this episode, Domenic and Jonathan Banta discuss:  Jonathan's experience in preparing and selling business   The importance of earn outs when creating a partner relationship  What he learned from previous transactions of businesses about sale process, diligence, and integration  How to streamline the process of collaborating different businesses.     Key Takeaways:  There was a seamless integration due to familiarity and synergistic relationships  Need to select the appropriate partner and make sure values and ideas are  aligned with your partner, as to prevent remorse  Be happy with what you get with clients and assume you will not get an earn out, if you are okay with that result, go forward with that partnership  There are consequences when selecting the wrong partner     "The crude math equation for a professional services company back then was roughly 1 times revenue and generally what you are fighting for a scenario like that is how much of it is upfront and how much of it is earn out." — Jonatha