“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 […]
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 […]