When to Walk Away from an M&A Deal: Lessons from Kim Kaupe

Welcome back to another edition of The Wise Exit!

In today's issue, we're covering:

1. When to Walk Away from an M&A Deal: Lessons from Kim Kaupe

2. LOI to Purchase a Business (How to Write + Key Components)

3. The #1 mistake that can SINK a deal fast

Let's dive in!

When to Walk Away from an M&A Deal: Lessons from Kim Kaupe

In a 2023 episode of the Cashing Out podcast, Todd Sullivan sat down with Kim Kaupe, a serial entrepreneur and founder of Bright Ideas Only. Kim's journey offers valuable insights for any founder considering an exit, especially because she went through the M&A process but ultimately decided to walk away from the deal.

Here are key takeaways from Kim's experience:

1. Know Your Non-Negotiables Before entering M&A discussions, do some self-discovery. Know what you want and what you're willing to compromise on.

2. Consider the Lifestyle Change Ask yourself: "Are you ready to have a job?" Remember, selling often means transitioning from being your own boss to having a corporate job.

3. Evaluate the Financial Impact Understand whether the deal will make a meaningful difference in your life. A large sum might sound appealing, but consider if it truly improves your financial situation.

4. Trust Your Gut Pay attention to those "red flags" that keep you up at night. Your instincts might be telling you something important.

5. Seek Expert Advice This is not the time for DIY. Find advisors who understand the M&A process.

6. Be Prepared for Opinions Once word gets out that you're considering selling, everyone will have an opinion. Do your self-discovery work before sharing the news widely.

Remember: It's okay to walk away.

Sometimes, knowing when to say no is just as important as knowing when to accept a deal.

As Kim says, "A successful exit is a journey, not a destination." Sometimes, that journey involves forging your own way forward.

Featured Blog 📰

Are you considering selling your business? Understanding the Letter of Intent (LOI) is crucial. Our latest blog post breaks down everything you need to know about LOIs in business transactions.

We cover:

• What exactly is an LOI?

• Key components of an LOI

• How to write an effective LOI

Did you know that an LOI can be a key defining step toward a successful business sale? Don't navigate this complex document alone.

Check out "LOI to Purchase a Business (How to Write + Key Components)" on our blog to learn more.

M&A Tips from Brian Dukes 💡

The #1 mistake that can SINK a deal fast.

Founders, listen up:

Your revenue numbers are NOT as objective as you think (even if you insist they are).

Why does it matter?

Read the full post on LinkedIn to find out why.

That's all for this week!

Remember, sometimes the bravest decision in M&A is knowing when to walk away. Keep assessing, improving, and staying true to your vision!

Best,

Brian Dukes