Michael Frankel, Founder and Managing Partner of Trajectory Capital

When times are good, big companies tend to ignore their smaller business units, as they operate smoothly on their own. It is only when the economy gets tough that these little businesses get more attention, and often seen as offstrategy or a distraction. That's when the company's leaders decide it's time to sell them, which is not ideal, as the business is no longer in their prime, making it harder to sell.

In this episode of M&A Science podcast, Michael Frankel, Founder and Managing Partner of Trajectory Capital, joins us to share his best practices of selling a small business unit.

Bookmarks
00:00 Intro
02:42 The decision to sell a business
04:25 Reasons to sell the business
06:22 Steps in selling a small business unit
10:08 Finding buyers
12:25 Avoid using bankers
14:19 Pitching the deal
15:56 Avoiding nonserious buyers
18:08 Important factors other than price
25:19 Real life example
31:15 Valuation gap
34:44 Evaluating the business
40:17 Hardest part of selling a small business unit
43:09 Advice for first time buyers
49:01 Proactively approaching a seller
55:40 Earnouts on small deals
57:19 Craziest Thing in M&A

#mergersandacquisitions #mascience #sellsidema #businessunit #divestiture
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M&A Science is the world’s first community resource for M&A tips, techniques, and strategies to achieve desired outcomes and better success. We bring you behind the scene stories, proven techniques, and key takeaways of reallife M&A deals. For more exclusive content from the industry's top experts, visit mascience.com