If you’re considering selling your business, you’ll get a better price and more favorable deal terms if you’re willing to walk away. William Ury, the author of Getting to Yes, coined the term Best Alternative To A Negotiated Agreement (BATNA) to describe your plan B if a deal falls through.
When selling your business, you may consider a variety of BATNAs, including:
- Are you willing to keep operating your business independently? If so, you have the ultimate BATNA.
- Could you hire a General Manager and promote yourself to the role of investor? If so, you have a BATNA.
- Are you open to selling a part of your business to a private equity group in a majority or minority capitalization? Then you, too, have a BATNA.
In addition to fine-tuning your BATNA, William recommends a series of other things in this week’s episode of Built to Sell Radio.
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Quote of the Week
“The single biggest obstacle to me getting what I want in a negotiation…is the difficult person on this side of the table. It’s me.”
– William Ury discussing self-awareness in negotiating the sale of your business.
Clip of the Week
In this clip, William Ury talks about maintaining perspective, strategic composure, and understanding your BATNA during negotiations.
Deals
- RedWave Technology, a company that develops portable analyzers for identifying chemicals in bulk materials, was acquired by 908 Devices Inc. for $53.5 million. 908 Devices specializes in creating handheld and desktop devices for chemical and biochemical analysis. In 2023, RedWave reported revenues of $13.7 million and was valued at just under four times its revenue for the acquisition.
- Shortridge Ltd., a laundry delivery service based in the North West of England, has been acquired by K-Bro Linen Inc. for £24.1 million on a cash-free, debt-free basis, subject to customary conditions including certain escrows. There is also a potential additional earn-out of £2.0 million contingent on achieving specific targets through September 2024. For the twelve months ending March 31, 2024, Shortridge reported revenues of approximately £12.5 million.
- Endomagnetics (Endomag), a developer of technologies for breast cancer surgery, has been acquired by Hologic in a deal valued at nearly $310 million. Hologic specializes in medical technology for women’s health. For the 2023 calendar year, Endomag reported revenues of $35 million, valuing the business at over eight times its revenue.
- Only What You Need (OWYN), a brand of plant-based ready-to-drink protein shakes, has been acquired by The Simply Good Foods Company for $280 million in cash. Simply Good Foods develops, markets, and sells branded nutritional foods and snacking products. For 2024, OWYN is projected to achieve net sales of about $120 million.
