| You have made the decision to sell your
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| | desire to ring the bell from your 30
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| healthcare information technology
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| | hospital chain deal, what do you do?
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| company. Maybe it was because your
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| | You engage a great M&A firm that
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| prospects are selecting the inferior
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| | specializes in Healthcare Information
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| product but superior safety of your brand
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| | Technology companies (I know of one if
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| name competitor. It could be that one of
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| | you are interested) to sell your
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| the industry giants recently acquired one
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| | business. Let them focus on selling your
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| of your small but worthy competitors and
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| | business and you focus on running your
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| has removed the risk component of a
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| | business and closing that big sale. Get
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| buyer's decision. You may think that you
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| | several buyers interested and negotiate
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| have a limited window of opportunity for
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| | for your best deal. There will be a lot
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| your technology and you should sell it
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| | of give and take here. At the right
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| while it still enjoys a competitive
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| | moment, as a counter to one of the
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| advantage.
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| | buyer's points, you ask for a 6-month
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| These are all good reasons to set your
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| | window post acquisition to close that
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| business sale process in motion. A
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| | deal. You then ask, for example, for an
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| critical element here is time. Good
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| | earn out incentive of 50% of the
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| technology not achieving meaningful
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| | contracted first year revenues of the
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| market penetration is vulnerable to
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| | hospital deal as "additional transaction
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| competition. Given this scenario, the
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| | value" payable 30 days after the one year
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| more rapidly you can get your acquisition
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| | purchase anniversary date.
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| opportunity in front of the viable
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| | There are lots of moving parts here so
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| buyers, the better your chance for more
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| | let me elaborate. The first element is
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| favorable sale terms and conditions.
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| | you do not delay your business sale
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| All systems go, right? But wait. We have
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| | process. We already established that it
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| a major proposal out to that 30 hospital
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| | was time critical. Secondly, I very
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| chain and when we get that deal our sale
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| | carefully chose the language "additional
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| price will sky rocket. So we are just
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| | transaction value". We want to make sure
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| going to wait for that deal to close and
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| | that this payment is not confused with
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| then put our company up for sale.
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| | ordinary income at double the long term
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| Let me give you a gem here. We will call
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| | capital gains tax rate. Third, you have a
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| it the Moving Sales Pipeline Theorem. It
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| | way better chance of closing the big
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| states the sales pipeline always moves to
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| | hospital chain as a division of G. E.
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| the right. This is based on over 20 years
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| | Healthcare, for example, than as XYZ
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| in technology sales and sales management
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| | Diagnostic Software, Inc. Finally, what a
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| experience and many years of selling
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| | great way to kick off a relationship than
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| companies with sales pipelines. The sales
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| | a big collaborative sales win that makes
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| either take much longer than projected or
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| | the buyer look really smart. Your earn
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| do not materialize at all.
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| | out check will be the most enjoyable
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| Given this, the time critical nature of
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| | payment they can make.
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| your pending business sale, and your
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