Over and Above the Numbers
A close review of the financial statements is always in order when considering the acquisition or merger of a company. However, that is only part of what a buyer is acquiring. Other important assets are: Repeat customers or clients Patented product, government approvals, profitable copyrights Broad customer or client base (diverse & growing) Long-term contracts Recognizable brand or...Read More
Improving Your Prospects for Selling
According to a Price Waterhouse Coopers survey of more than 300 privately held U.S. businesses that have been sold or transferred, the most common steps companies take to improve their prospects for a sale, prior to taking the company to market, include: Improving profitability by cutting costs Restructuring debt Limiting owners’ compensation Fully funding the company pension plan Seeking the...Read More
Dealing with Inexperience Can Ruin the Deal
The 65-year old owner of a multi-location retail operation doing $30 million in annual sales decided to retire. He interviewed a highly recommended intermediary and was impressed. However, he had a nephew who had just received his MBA and who told his uncle that he could handle the sale and save him some money. He would do it for half of what the intermediary said his fee would be – so the...Read More
The Variables that Drive and Influence Business Valuations
If you’ve never bought or sold a business before, then the factors that drive and influence business valuations likely seem a bit murky. In a recent Divestopedia article from Kevin Ramsier entitled, “A Closer Look at What Drives and Influences Business Valuations,” Ramsier takes a closer look at this important topic. Business brokers and M&A advisors play a key role in helping business...Read More
Is Your Business Really Worth Handing Over to the Next Generation?
Before you begin your business, you should be thinking about how you will hand that business over to someone else. No one runs a business forever. Whether you sell your business or let a relative inherit it, at some point you will need to step away. When you finally do separate from your business, it is critical that you are certain that it is worth handing over. In his January 2019...Read More
Erase the Stress of Selling Your Business by Finding the Right Buyer
There is no denying that life is much, much easier when one can find the right buyer for one’s business. Buying or selling a business can be a stressful process, but much of that stress can be eliminated with the right support. Table of Contents: The Concept of the “Right Buyer” Plan in Advance Keep Your Focus on Your Business The Concept of the “Right Buyer” In the recent Inc....Read More
Do You Know What Kind of Business Owner You Really Are?
Does your business have real, long-lasting longevity or is your business a temporary entity that will vanish the second you stop working on it? In his insightful article in The Business Journals entitled, “Are You Living for Today as a Business Owner or Building Value?” author Kent Bernhard asks a very important question of readers, “Are you a lifestyle business owner or a value...Read More
Business Buyers Can Leverage SBA Lending
Finding the money to start your own small business can be a challenge. Over the decades, countless people have turned to the Small Business Administration (SBA) for help. A recent Inc. Magazine article, “Kickstart Your Business Dreams with SBA Lending,” by BizBuySell President, Bob House, explored how SBA lending can be used to the buyer’s advantage. The article covers the basics of an SBA...Read More
How Employees Factor into the Success of Your Business
Quality employees are essential for the long-term success and growth of any business. Many entrepreneurs learn this simple fact far too late. Regardless of what kind of business you own, a handful of key employees can either make or break you. Sadly, businesses have been destroyed by employees that don’t care, or even worse, are actually working to undermine the business that employs...Read More