When should Seller leave: This Seller Stayed On
In a twist with our standard M&A deals with smaller LSPs, this past year, the owner of a smaller LSP focusing on government contracts elected to stay on, long term, after the acquisition. So the negotiation centered around two spheres, pricing of the business and the salary and compensation package of the new hire/former owner. This can be a great fit, if there is agreement on the direction and process of growth from both sides. It can also be a challenging situation with an owner/seller who no longer ‘calls the shots’. In this case, the latter was true. Was a bad cultural fit and the sides ended up terminating the new hire/former owner, while continuing the payout for the acquisition.
ANZU GLOBAL LLC
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