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 […]
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 […]
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.
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 […]
How much can you sell your landscaping business for? 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 […]
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 […]
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 […]
“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 […]
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 […]