The headline price is one part of your outcome

Two proposals with the same headline value can mean very different things for an owner.

The useful question is what each proposal would require and deliver in your circumstances. Begin with the terms, then connect them to the financial and personal objectives that brought you to a sale.

Separate money at closing from future payments

Identify the amount expected at closing and the amounts that would be deferred, contingent or invested alongside the buyer. Ask what determines whether later payments are made, when they would arrive and what risks remain with you.

A proposed enterprise value is not automatically the cash an owner receives. Ask your advisors to explain the bridge from the quoted value to the expected proceeds, including the items still subject to agreement or verification.

Understand the role you would keep

Employment, consulting and transition expectations can shape everyday life after closing. Discuss responsibilities, decision-making authority, duration and the support a buyer expects. Make room for your own preference about how quickly you want to step back.

If you would retain an ownership stake, understand what that continuing investment means. Your legal and financial advisors can help you examine the rights, obligations and uncertainties involved.

Examine the path to closing

Ask about funding, outstanding approvals, diligence and the proposed timetable. Separate a buyer’s current intentions from commitments already made. If assumptions change as the process progresses, revisit what the revised proposal means for you.

The purpose is to understand execution considerations alongside the economics. A transaction that has not closed still has work and decisions ahead.

Return to what you wanted for the company

Discuss the buyer’s plans for employees, customers, operations and the company identity. Identify the commitments that matter and examine how they are reflected in the proposed terms with counsel. Do not assume a reassuring conversation resolves every important detail.

Evaluate the proposal with your transaction, legal, tax and personal financial advisors. The right questions depend on your business and circumstances. A clear comparison helps you see the tradeoffs and decide which next step deserves your attention.