Performing due diligence on a business being considered for purchase should be conducted much like a surgical procedure. The operation should be an organized examination of the vitals of the company. It should also be approached knowing that this is an invasive phase of the sale process for the owner. This stage of buying a […]

The reasons for selling a business can be divided into two main categories. The first is a sale that is planned almost from the beginning or by an owner who knows that selling is or should be a planned event.  The second is exactly the opposite – unplanned; the sale is motivated by a specific event such as health, divorce, business crises, etc. However, in between the two major reasons, are a host of unpredictable ones.

It’s no fun telling a songwriter his song is bad. Telling an author her novel won’t sell takes nerves of steel. Telling a business owner his business is overvalued is no way to make a friend, much less gain a client. Marvin (not his real name) was flat P-O’ed at me. When I told him […]

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 […]

No matter how the real estate is held, many owners desire to sell the real estate with the business. There's only one problem. Many buyers that will want to acquire your business will not have the capital to also acquire the real estate.  Or they may feel that parking a significant investment in real estate makes a large portion of their investment capital unavailable for growing their new enterprise.  The ideal scenario that creates the largest buyer pool is for the seller to offer the real estate for sale or for lease at the option of the buyer.

The business sale process typically begins with an initial inquiry stage, during which owners try to get an idea of what their businesses are worth and whether selling makes sense. They are “sale curious” and have been thinking about it more than a time or two. When a business is sold, big or small, taxes […]

We understand that most people do not have time to monitor everything that is happening in the market. So, to make things easier, we have compiled a brief report on last year’s business sales and the current economic outlook. A record number of small businesses were bought and sold in America in 2016, topping 2015’s […]

Are you a business owner at that stage in your life where you are contemplating the potential sale of your company? Undoubtedly you have thought about selling a time or two and truth be told, 100% of all business owners have from time to time. It’s perfectly normal to question why, when or how to […]

“Not every business will sell and a significant number never make it to market because professional, ethical advisors won’t take on an engagement with little-to-no chance of success. The Q1 2019 Market Pulse Survey reveals that, on average, advisors decline about 70% of the business opportunities that come their way because the business is considered […]

Selling your business will likely be one of the biggest decisions of your business life. No doubt you have a good idea of what your business is worth. But there are many factors to consider when putting your company on the market. Is now the best time to sell? Should I look for a cash […]

Did you know that Texas and many other States require you to have a license to be a locksmith, but has zero requirements to call yourself a business broker? There is no State test of knowledge or standards of ethics to prove expertise as an intermediary in business brokerage.  Shocking isn’t it!  In the face […]

The Q3 2018 Market Pulse Survey Report indicates that retirement continues to lead as the number one reason for selling a company (52% for companies valued at $1M-$2M, and 56% for those valued at $2M-$5M). Because a business often represents up to 70% percent of the owner’s overall wealth, it is critical that they take a proactive […]

Perhaps you’re planning to retire, or perhaps you’ve decided to pursue a different type of business venture. You realize this is the perfect time to sell your business, and you want to ensure you’ll receive a profit that reflects the time and dedication you’ve put into your business. A strategic executed business exit plan is the […]

It is human nature for business owners who are putting their companies up for sale would want to go to market with a higher price than what the valuation suggested, hoping buyers will still look at the opportunity. Unfortunately, though, the right buyers are savvy, knowledgeable, and serious about their acquisition targets. These buyers know […]

What Does New Owner Training Involve? When you sell your business, it’s common practice to provide training for the new owner.  But what does new owner training involve? What are your responsibilities? And how long will you be “on the hook” after the deal has closed? The whole idea of training the new owner may […]

One of the most challenging aspects of valuing a small business is Recasting Financial Statements using cash flow adjustments, also known as “add-backs”. Larger businesses tend to have CPA-reviewed or even audited statements and adjustments may be limited to officer compensation or bonuses. However, for smaller businesses, it’s no secret that owners try to limit their tax […]