Business branding has become an art and it all starts with a vision! A little moxie can go a long way if your business is in a competitive market. A unique brand identity that distinguishes your business from your competitors is the route to success for all companies. The better the brand position you have […]
Customarily, escrow fees are split 50/50 between the buyer and the seller and vary depending on the size of the transaction. Escrow cost is less than 1% of the purchase price of the business. However, there is a minimum fee for unusually small deals. Other charges may apply to one party or the other for specific […]
Most business owners, have thought about selling their business a time or two. They’ve imagined, dreamed, and wondered what it would be like to be free of all the trappings, headaches, and burdens of running their company. They probably also wonder how cumbersome the sale process might be and what it entails. While we can’t tell […]
This is a common question asked by business owners who are thinking about putting their business on the market for sale. They want to understand the parameters of a business deal and what to expect from prospective buyers. Negotiation may seem a daunting task, but when explained in a balanced manner, negotiation should be deemed a […]
If you buy a business in Texas, now is a good time to buy a business. With a roller-coaster stock market, a not-quite bottomed-out real estate market, and interest rates so low, there is nowhere else that will yield a higher return on your investment than in your own business. In what other investment can you […]
Over the past 38 years our firm has been involved in many discussions with business owners considering the sale of their businesses. There are a few particular myths that have repeatedly surfaced during these discussions. Since a typical small business owner will sell a business only once in his or her life, it is not […]
A business valuation is not about what a company is worth in the current owner’s hands, it’s about the company’s transferable value. It’s about the probability that the business will sustain its profitability and continue to grow with a new owner at the helm. Therefore, the factors that contribute to the company’s stability and consistency will be […]
Due Diligence is the final hurdle of the business sale process. It is the time when the buyer requests from the seller any documents and materials needed to verify that all representations made by the seller are accurate and occurs after a purchase contract is signed by both parties in the transaction. The contract is […]
“A friendship founded on business is a good deal better than a business founded on friendship.” – John D. Rockefeller For a variety of good reasons people partner up to purchase a business, whether it be one partner contributing the funds and the other putting in the time and knowledge or both simply deciding to […]
This is the question I get more than any other and my answer is YES, Absolutely Yes!! My answer may surprise you, and some may even want to argue, but if you have been in the lending or business brokerage industry for more than 6 or 7 years I think you will agree. When I […]
While the first question a business owner asks is, “What kind of price can I expect in the marketplace if I sell my business,” the real question is not the price paid for the business, but how much will you take home. The Federal Tax Laws determine how much money you will actually be able to put in […]
When looking for a business to purchase, most prospective buyers have an initial list of qualifying questions they ask an owner of a business in which they have interest. In addition to this baseline information, buyers may use the first couple of meetings or calls to get a clearer understanding of the business and to […]
Deals fall apart for many reasons – some reasonable, others unreasonable. For example: The seller doesn’t have all his financials up to date. The seller doesn’t have his legal/environmental/administrative affairs up to date. The buyer can’t come up with the necessary financing. The well known “surprise” surfaces causing the deal to fall apart. The list […]
There are three major negotiation methods. 1. Take it or leave it. A buyer makes an offer or a seller makes a counter-offer – both sides can let the “chips fall where they may.” 2. Split the difference. The buyer and seller, one or the other, or both, decide to split the difference between what the buyer is willing […]
There are unique attributes of a company that make it more attractive to a possible acquirer and/or more valuable. Certainly, the numbers are important, but potential buyers will also look beyond them. Factors that make your company special or unique can often not only make the difference in a possible sale or merger, but also […]
Vacation – it’s often an elusive concept for the owners of small businesses. Even when owners do take time off, chances are they’re still checking in constantly, which has become increasingly easy to do in this age of the smartphone and ever-omnipresent Internet connectivity. The ironic thing is that this constant owner involvement can actually […]
The valuation of a restaurant is much like any other business valuation. But, there are certain factors unique to the restaurant industry. The universal drivers for many restaurants are pretty simple: quality, hospitality, consistency, value, cleanliness, and customer loyalty. You may have heard the saying that the three most important ingredients for a successful business […]
Serious buyers want to carefully look at the financials of a company under consideration and all of the other major aspects of the company. However, there are a few other areas that the serious buyer will investigate that sellers may overlook. The Industry – The buyer will want to take a serious look at the industry […]
Concentration in the acquisition world is a bad word. Businesses with high supplier concentration attract fewer buyers and this lowers the price. What’s too high? Having a supplier with 40% of your business is too high. Diversify if at all possible. When buyers look at a company for sale, they look at risk. Supplier concentration […]
Future profit potential, and how much you can impact that future, is the most important intel you can have when purchasing a business. Future growth will ultimately be the measurement of the merits of the investment and is key to your achieving a good return. However, one of the key steps in determining whether or […]
If there’s one thing I’ve learned in my years of working as a Certified Financial Planner™, it’s that entrepreneurs are a special breed of people. They’re motivated. They’re inspired. They’re incredibly tenacious. They’re smart. They’re optimistic. And they know how to get what they want. On the flip side, many entrepreneurs are guilty of being […]
The Dow Jones closed at an all-time high on Friday, September 19, 2014. And the NASDAQ and S&P were within ¼ of 1% of their all-time highs. As a result, corporations, private equity groups, and individual investors are flush with cash – trillions of dollars. Where can they go with all that cash? Interest rates […]
Every small business owner invests a substantial amount of blood, sweat and tears into their business. Late nights and early mornings, weekends away from their loved ones, hours lying sleepless, wondering what entrepreneurial surprises are coming next. All this effort is intended to make the business a success – and to make it worth more than just […]
Selling your business is the most important transaction you will ever make. It would be a shame to spend 20 years building your business like a pro, only to exit like an amateur. By avoiding these eight common novice mistakes you’ll have a more profitable and satisfying experience. 1. Selling Because of an Unsolicited Offer […]
When getting ready to sell a house or a car, the first thing people do is clean it up and get rid of the clutter. It is not different when selling a business. The process just has to begin much sooner. Buyers look at the past three or four years of financial performance, so that […]
We have all been there before—you are cruising along with some great momentum, on the verge of putting a deal together, until suddenly the buyer thinks they should be allowed to meet and speak with employees prior to the closing. This can sometimes stop a deal in its tracks, but in my opinion, it never […]
Selling your business is no stroll in the park. You’ll need the right motivation, a ready mindset, and something attractive to sell. So, a key factor to a successful sale is preparation. The more effort you spend preparing your company for an eventual sale, and understanding the factors that make a business sellable, the more attractive your business […]
When selling a business, time is not your friend. Time is the enemy of all deals. In fact, “Time kills all deals” is an expression that can be associated with a number of different industries but is especially relevant to business acquisitions. So, the key to a successful deal is to prepare well, come out […]
There are very logical reasons why you don’t see public “Business For Sale” signs posted on reputable, profitable companies. Why? Because that sign would soon be replaced with “Going Out Of Business Sale.” Consider the following points. First, even if the you don’t actually hang a “For Sale” sign outside the window, trying to sell it on your own […]
Years 2018 and 2019 may be ideal times to sell your Houston business. Values have never been higher, particularly for well-run companies. We’re also beginning an upswing in economic cycles. That’s the ideal time to sell a business. It won’t last forever, so if you’re contemplating an exit, 2018 may be the best time to […]
Takeaway: Internal and external factors are important considerations when selling a business. Here are issues you should think about when trying to time your exit. There are many factors that determine best timing for selling a small business — the financial condition of the company, valuation, growth cycle, profit history, and the current market. Usually […]
Circumstances that give a business an advantage over its competitors, strengthen its strategic position, or can be leveraged for future gain boosts business value. Why? Because it increases the probability of the continued future profitability of the business and decreases perceived risk by prospective buyers. As with all value drivers, it’s about risk. Lower risk […]
There is little doubt that valuing a business is often complex. In part, this complexity is due to the fact that business evaluation is subjective. The simple fact is that the value of a business is often left to the mercy of the person conducting the evaluation. Adding yet another level of complexity is the […]
It would be nice to live in a world where every business-for-sale was sold at top dollar. While there is no such thing as a perfect business free from all defects, there are a number of problems that can hinder a sale that could be remedied, if given enough time. This article lists ten of […]
What Factors Impact the Value of a Landscaping Business? This checklist outlines the most important variables that impact how much your landscaping company is worth. Groom your landscaping or lawn care business to achieve maximum value before putting it up for sale. Staff Build a management team: A business is more valuable if the owner is […]