In pricing a business for sale, we usually look at a multiple of cash flow or seller’s discretionary earnings for the industry of the business we are valuing and arrive at a sales price. But what if I told you there was a way to maximize your business’ value and receive more than your industry [...]
We’ve addressed in the past the difference between having a true business versus just having a job within your business. The more a business can run without the owner involved in its direct operation, the more value the business has to the owner and any eventual acquirer. Some owners focus on growing their profits, while [...]
You might be eager to sell your business and happy to have an acquirer at your doorstep, but what’s it like when an acquirer starts looking inside every inch of your business?Most professional acquirers will have a checklist of questions – both objective and subjective – that they need answered before getting serious about buying [...]
What are your business goals? If you’re like most owners, you have a profit goal you want to hit. You might also have a top-line revenue number that’s important to you. While those goals are important, there is another objective that may have an even bigger payoff: building a salable business. But what if you [...]
Are you trying to time the sale of your business so that you exit when both your business and the economy are peaking? While your objective to build your company’s value is admirable, here are five reasons why you might want to sell sooner than you might think: You May be Choking Your Business. When [...]
In the past year, I've had multiple competitors approach me to acquire one of the businesses that I own. Being approached by competitors -- or anyone for that matter -- is always flattering, but, more importantly, it opens a door for many business owners that they have not considered in the past: selling their business. [...]
You’ve always wanted to own a business and go down the path of entrepreneurship. But you know starting a business such as an LLC from scratch can be time-consuming and financially draining. Maybe you should just buy an existing business instead? If you’re looking to buy a business, it’s not as simple as making the [...]
The process of buying a business involves some preliminary review and analysis in order for a buyer to provide a seller with an Offer to Purchase or Letter of Intent (LOI). The Offer to Purchase allows the buyer and seller to agree on a price and terms for the sale, while still permitting the buyer [...]
Running a business that makes money and is healthy is extremely satisfying. For some though, selling a business especially for a profit can be even more satisfying. In my case, I wanted to move on to other projects and I had built solid businesses over the years so I decided to find a suitor to [...]
This is the time of year when business owners are budgeting for next year and planning strategic decisions for the future. Those decisions may involve pursuing a new product, upgrading an IT system or opening a new location. When making strategic planning decisions, are you — the business owner — considering the impact on the [...]
