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 […]
You can use funds from qualified retirement accounts such as 401(k), 403(b), pension, profit sharing, and IRA rollovers to start or buy a business with no taxes, no penalties, no loan repayment and no hassle. Will I pay tax or penalties if I use retirement funds to buy a business? Not if you use qualified […]
Is 2020 a Good Year to Sell a Business? Before deciding whether or not to buy or sell a business in 2020, you should be aware that political fears are driving down business valuations. While there is no recession yet, the prospect of one is still on the horizon, and 53 percent of business brokers surveyed […]
Small businesses often operate as if their sole purpose is to fund the owner’s lifestyle, but the most valuable companies are run with financial rigor. You may be years from wanting to sell your business, but starting to formalize the operations now will help you build the future value of your business. Then, when it comes […]
Buying a business is a nuanced endeavor. There are a lot of details that can be easily overlooked if you aren’t doing due diligence. From analyzing the competitive marketplace to examining the top buyer mistakes, we’ve compiled a list of our six most popular blog posts to provide the wealth of information you need as […]
The following is a discussion of 16 common mistakes made by first-time or novice Buyers in their search for a business to purchase. Use this checklist to help you from making the same wrong moves. (1) Inadequate Assessment of Capital Resources When a business broker attempts to QUALIFY A NEW BUYER in terms of his financial resources, the […]
“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 […]
You could waste your time seeking out the next Facebook or Uber. But the more successful path often involves taking over an existing successful business. Now is one of the best times to consider this potentially lucrative option. Why it’s a Great Time to Buy Aging Baby Boomers have created a tsunami of businesses about […]
Selling a company is no small feat. It can be time-consuming and stressful. It demands meticulous planning, competent advice, and a keen understanding of the dynamics of negotiation and deal-making. CEOs and companies inexperienced in the M&A process commonly make mistakes that can undermine a deal, resulting in a less favorable price—or even kill the […]
“I have a medium sized company which I have owned for about 20 years. We specialize in the manufacture and distribution of chemical products and have built a good business. However, my children aren’t involved or interested in the business so I am considering selling it. The problem is that I have no idea how […]
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 […]
Takeaway: Evaluate your company through the eyes of a buyer. Master these ten value drivers and sell at the higher range of the multiples normally associated with your industry. Business Value — What Drives It? A valuation is not about determining what a company is worth in the current owner’s hands, it is about the […]