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September 2018

Angela Mader founded fitlosophy

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Angela Mader founded fitlosophy ®, a fitness and lifestyle products company, in 2008. Beginning with a fitness journal she called “fitbook”, Mader built a brand that focused on helping customers achieve their fitness goals.

By 2017, fitlosophy had grown to 6 employees, $2 million in top-line revenue and Mader was selling her journals in 16,000 stores including giant retailers like Target, Walgreens and CVS. That’s when CSS Industries (NYSE: CSS) came knocking.

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Six things to understand when negotiating with a private equity entity
Private equities entities have well prepared specialists who know how to satisfy their interests and buy at very attractive prices. They will be your partners and you will have to trust them when they become part of your company, but before this will happen, they are your opponents and you should be careful to protect your interests. In this article you will learn about six methods you can use when negotiating with a private equity firm.
Consider these recommendations looking at a private equity entity

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Six Steps to create a business plan

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Regardless of what stage a company is at in its corporate life cycle, the market conditions it faces or how successful it is, it can always benefit from creating and/or updating their business plan. In addition to serving as a Vision and mission statement on guiding the entire team, a great business plan will help articulate strategy on the vision to your stakeholders that are vital for a firm’s success, including customers, financing parties, potential joint venture partners and counterparties in M&A transactions. This article identifies six steps that entrepreneurs and companies should keep in mind when creating and implementing their business plans. Read More

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One of the biggest mistake owners make in selling their business is being lured into a proprietary deal.

The Definition Of A Proprietary Deal

Acquirers land a proprietary deal (or “prop deal”) when they convince owners to sell their businesses without creating a competitive marketplace. Acquirers running a proprietary deal know they don’t have any competition and tend to make weaker offers with more punitive terms because they know nobody else is bidding.

Many founders become the target of a proprietary deal without even knowing they have been duped. First, someone senior from the acquiring company approaches the founder, complimenting them on their business. The acquirer suggests lunch, and then high-level financials are exchanged. Soon, the owner starts going down a path that is difficult to come back from.

As the parties in a proprietary deal get to know one another, founders often share information with the acquirer that puts them in a compromised negotiation position. The interactions are set up as friendly exchanges between two industry leaders, but many founders reveal key facts in these discussions that end up being used against them when negotiations turn serious. Business owners also become more emotionally committed to selling the more resources they invest in the process and the more time they spend thinking—perhaps dreaming—of what it would mean to sell their business..

How To Avoid Getting Taken In By A Proprietary Deal