The Importance of Advisors in Mergers and Acquisitions

In this episode, Fredrik engages with Nick Olsson, Managing Director of Cornerstone International Alliance, to explore the intricacies of mergers and acquisitions (M&A). They discuss the importance of having an experienced advisor when selling a business, especially for first-time sellers. Nick emphasises the need for business owners to maintain operational stability while navigating the sale process and highlights common exit strategies, such as earn-outs and seller financing.  KEY TAKEAWAYS M&A refers to the buying and selling of businesses, which can involve exiting a company or growing through acquisitions. Business owners often need guidance in navigating this complex process, especially if it's their first time selling. Engaging an M&A advisor is crucial for business owners looking to sell. Advisors help level the playing field against experienced buyers, assist in valuing the business, and facilitate a competitive bidding process to secure the best offers. Business owners should always be prepared to sell by maintaining up-to-date financials, understanding their business's value, and ensuring that the business can operate independently of them. This preparation can significantly enhance the business's marketability and value. xit terms can vary widely, including cash at closing, earn-outs based on future performance, or rolling over equity into the new company. The structure of the deal is often as important as the sale price, and sellers should consider their long-term goals when negotiating. Common reasons for selling a business include health concerns, retirement, burnout, or a desire to pursue new opportunities. Business owners should be aware of these motivations and plan accordingly to ensure a smooth transition and avoid leaving a burden on their families. BEST MOMENTS "In most cases, your business is your baby. You've built it up over however many years, and it's your identity." "If you can slowly work yourself out of the business, the business can run with you kind of removed." "If it sounds too good to be true, it is." "You want to avoid that situation. You don't want that retrade because obviously that delays things." "The worst situation you can be in is you have to sell, but the numbers don't make sense." Nick Olsen  https://www.linkedin.com/in/nick-olsen2328/ https://www.youtube.com/@cornerstone_intl_alliance cornerstoneia.com Books by Fredrik Sandvall Options Strategy: Build to Keep. Ready to Sell Tomorrow. For founders and CEOs who want businesses that compound in value, stay under control, and are always sale-ready. ⁠https://amzn.to/4pwVhoi⁠ The Abyss of Finance: Trust, Leverage and the Cycles of Collapse For investors and leaders who want to understand why financial systems break before they do. ⁠https://amzn.to/3YsRKfI⁠ About the Podcast Invest in You is a global podcast where entrepreneur and investor Fredrik Sandvall shares practical ideas and conversations with founders, investors, and operators. Episodes focus on investing, entrepreneurship, and building long-term control and freedom. Occasionally joined by his sons Ivan and Charlie, the show offers both experience-based insight and a next-generation perspective. Listeners in 155+ countries tune in to think clearer, act smarter, and build with intent. Community & Contact Podcast community: https://bit.ly/4jxF94k Fredrik Sandvall LinkedIn: ⁠https://www.linkedin.com/in/sandvall/⁠ Facebook: ⁠https://www.facebook.com/FredrikinLondon/⁠