Best Practices while interacting with other SMERGERS users


For Business Owners

  • Business owners should ensure their business profile is up to date with the latest financial numbers which are factually correct.
  • It is important to have a business plan and valuation done for your business well in advance so expectations are clear.
  • Reveal in advance if there are any negatives about your business rather than the investor finding it himself during the due diligence exercise.
  • Don’t rush the other party during the sale process which may affect the transaction process. Provide sufficient time for the other party to take a decision.
  • When an introduction is made send a quick note on SMERGERS to schedule a discussion call instead of directly calling up the party.
  • During the call, the first few minutes could be utilized to introduce yourself, build rapport and set the tone for the discussion.
  • Basic discussion on the business & transaction should be initiated in the first call itself.
  • Do your research about the user’s background and his/her business before you decide to meet in person.
  • When meeting someone for the first time, do not meet in a secluded place, or invite strangers into your home.
  • Ideally, the Financial statement & other sensitive documents should be sent to a potential investor only after an NDA has been signed.
  • Do not ever pay any kind of token advance or deposit money before any transaction is made with the investor. No genuine investor/buyer would ask for such a token advance.
  • Financial advisors who request for a retainer/upfront fee should be evaluated properly before entering into any kind of agreement. Be aware that not all transactions close successfully even with the best of financial advisors.

  • For Buyers and Investors

  • Investors and Acquirers should ensure that their profile reflects their current investment capacities & business activities
  • It is a good idea to share your source of funds, and your past investments and acquisitions with a business owner while pursuing investment / business / sale opportunity to enhance the transaction speed
  • Mention very clearly if you are a strategic or financial investor i.e if you are purely interested in financial returns or you have other synergies with the business
  • Don’t rush the other party during the sale process which may affect the transaction process. Provide sufficient time for the other party to take a decision.
  • When an introduction is made send a quick note on SMERGERS to schedule a discussion call instead of directly calling up the party.
  • During the call, the first few minutes could be utilized to introduce yourself, build rapport and set the tone for the discussion.
  • Basic discussion on the business & transaction should be initiated in the first call itself.
  • Do your research about the user’s background and his/her business before you decide to meet in person.
  • When meeting someone for the first time, do not meet in a secluded place, or invite strangers into your home.
  • Do not ever offer to pay money to somebody who demands a token advance before any transaction is made.
  • Financial advisors who request for a retainer/upfront fee should be evaluated properly before entering into any kind of agreement. Be aware that not all transactions close successfully even with the best of financial advisors.