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Digg it UP - Business Sellers Often Suffer from Single Buyer Syndrome
The days of medical billing where you walked into a doctor's office and the receptionist was busy printing out the few bills she had are long gone. Today, most of the medical billing that is done is done by very large companies. While this may seem more efficient and certainly more profitable to their customers, there are many pitfalls that a large company can fall victim to. In this article, you'll read some basic tips that large medical billing companies should follow
· The seller has a difficult time getting the buyer to put some terms and conditions in writing. If he does, it provides a good deal of wiggle room to adjust his offer as due diligence progresses.
· The process seems to stretch on and on as more meetings get delayed and rescheduled.
· Finally, the seller gets aggravated
There are two Post Offices that I routinely visit. One is the office that delivers my mail and the other is frequently on the path of some daily errands. Many times, I will actually detour to visit that particular Post Office ... why?The Postmistress there is an exceptional human being. Her name is Karyn, but she spells it ... and has a name badge ... as Care’n!!! I hardly need to relate the remainder of this story. But here are some observations. Care’n is warm, f
We often get an inquiry from this business owner because this is usually the only time he will sell a company. He wants advice from us and his position is that he will hire our firm to represent him if this buyer falls through. Really the best advice we can give him is to engage our firm and let us throw this buyer into the mix of potential buyers that we will uncover. His response is almost always, I just want to see how this buyer plays out. We have watched this movie that I will call the Single Buyer Syndrome, a hundred times, so let me describe how it plays out.
· The potential buyer begins an exhaustive courting and informal due diligence process without any offer or Letter of Intent.
· The owner takes his eye off the ball, counting his millions prematurely and devotes less attention than usual in running his business.
· The buyer draws out the process by delaying and rescheduling meetings. He does not treat this process with the same focus and sense of urgency that the seller is now consumed with. Do you know why? The buyer is doing the same dance with 3 or 4 other prospective acquisitions.
· The seller has a difficult time getting the buyer to put some terms and conditions in writing. If he does, it provides a good deal of wiggle room to adjust his offer as due diligence progresses.
· The process seems to stretch on and on as more meetings get delayed and rescheduled.
· Finally, the seller gets aggravated
Accepting a counter offer is one of the biggest mistakes that you can make during your career.To be clear, a counter offer is when you try to resign from your current employer after accepting another job elsewhere and your current employer tries to keep you by offering you (typically) more money, a better job, more benefits, more vacation, etc.In other words, they try to bribe you to stay.The question you need to ask yourself is if you were worth
We often get an inquiry from this business owner because this is usually the only time he will sell a company. He wants advice from us and his position is that he will hire our firm to represent him if this buyer falls through. Really the best advice we can give him is to engage our firm and let us throw this buyer into the mix of potential buyers that we will uncover. His response is almost always, I just want to see how this buyer plays out. We have watched this movie that I will call the Single Buyer Syndrome, a hundred times, so let me describe how it plays out.
· The potential buyer begins an exhaustive courting and informal due diligence process without any offer or Letter of Intent.
· The owner takes his eye off the ball, counting his millions prematurely and devotes less attention than usual in running his business.
· The buyer draws out the process by delaying and rescheduling meetings. He does not treat this process with the same focus and sense of urgency that the seller is now consumed with. Do you know why? The buyer is doing the same dance with 3 or 4 other prospective acquisitions.
· The seller has a difficult time getting the buyer to put some terms and conditions in writing. If he does, it provides a good deal of wiggle room to adjust his offer as due diligence progresses.
· The process seems to stretch on and on as more meetings get delayed and rescheduled.
· Finally, the seller gets aggravated
You might have already done enough research that you're familiar with the term "medical billing". But often times, people have different understandings of what medical billing actually is and how it differs from other similar aspects of the medical profession. Most often, medical billing is mistaken for medical transcription or coding, which are very closely related but different enough that they should really be considered 3 separate specialties. It's true that there is
· The potential buyer begins an exhaustive courting and informal due diligence process without any offer or Letter of Intent.
· The owner takes his eye off the ball, counting his millions prematurely and devotes less attention than usual in running his business.
· The buyer draws out the process by delaying and rescheduling meetings. He does not treat this process with the same focus and sense of urgency that the seller is now consumed with. Do you know why? The buyer is doing the same dance with 3 or 4 other prospective acquisitions.
· The seller has a difficult time getting the buyer to put some terms and conditions in writing. If he does, it provides a good deal of wiggle room to adjust his offer as due diligence progresses.
· The process seems to stretch on and on as more meetings get delayed and rescheduled.
· Finally, the seller gets aggravated
When an employee gives a two-week notice of resignation, is the company required to honor it? Alternatively, can the employer make the notice date the last day of work?Employers are not required to honor an employee’s resignation notice period. However, there are several issues to consider before making the notice date an employee’s last day of work. However, before making the notice date of a resignation the last days of work consider how it will affect the followin
· The buyer draws out the process by delaying and rescheduling meetings. He does not treat this process with the same focus and sense of urgency that the seller is now consumed with. Do you know why? The buyer is doing the same dance with 3 or 4 other prospective acquisitions.
· The seller has a difficult time getting the buyer to put some terms and conditions in writing. If he does, it provides a good deal of wiggle room to adjust his offer as due diligence progresses.
· The process seems to stretch on and on as more meetings get delayed and rescheduled.
· Finally, the seller gets aggravated
Looking for work is a roller-coaster ride: high with elation when you think you've found a great position, low with discouragement when you realize that someone else was offered a job you wanted.Most of the time, you fall somewhere in between, your mood cycling from cautious optimism to keen disappointment. You try to conceal the inner turmoil, turning a brave face to the world, trying to convince everyone that you are "just fine."For the sake of your health a
· The seller has a difficult time getting the buyer to put some terms and conditions in writing. If he does, it provides a good deal of wiggle room to adjust his offer as due diligence progresses.
· The process seems to stretch on and on as more meetings get delayed and rescheduled.
· Finally, the seller gets aggravated and begins to put some time limits and demands on the buyer.
· The buyer now gathers his team of accountants, attorneys, operations managers, and others to tear apart your company.
· This team finds all kinds of problems that they use to justify lowering the offer and increasing the reps and warranties and increasing the amount of hold back in an escrow account. They also bring up the requirement for owner financing for the first time.
· The buyer has carved a significant chunk out of his offer while using all his experts to back him up. The seller is now 6 months into the process and the buyer knows that you have a great deal of skin in the game. He is counting on the seller to just cave and weakly counter because this process has just worn him down.
· If the seller relents, he likely has had his original offer reduced by 20% or more. The original offer, however, started below what the business was actually worth. If he sells under these circumstances, he likely will realize 30% or more below what a fair market competitive bid situation would produce.
· The other response from the seller is to be insulted and blow up the deal, leaving his company in a weaker state than when this whole process began. The seller focused much of his own energy on this process rather than running his business.
· The buyer moves on to his next acquisition candidate with the same M.O.
Unfortunately, the story does not end here. Many owners will go through this process mor
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