Negotiating Leverage

Negotiating Leverage

One of the key factors in any strategic transaction is leverage. Leverage can be a key component to optimizing value and the terms of the ultimate agreement, the pace of the marketing process, and the responsiveness of the potential buyers/investors/capital providers.

Leverage: Buyer — Seller talks to only one buyer/investor/capital provider or a limited number of buyers/investors/capital providers and does not get advice from an investment bank.


Leverage: No Advantage — Seller talks to several buyers/investors/capital providers and does not get advice from an investment bank.


Leverage: Seller — Seller hires an investment bank to serve as its financial advisor, in addition to legal and accounting advisors, to run a competitive, professionally-managed marketing process and show the opportunity to numerous qualified candidates.