Red Flags are Not a Pretty Sight

When it comes to selling a business, sellers simply must pay attention to red flags. Problems can always pop up, and that's why they need to keep their eyes open. Rarely does a “white knight” ride in and rescue a business with no questions asked. And if this were to happen, you should be asking, “Why?” Until a deal is officially inked, sellers … [Read more...]

Buying? Selling? Seven Key Points to Consider

Buying or selling a business is one of the most important decisions that most people ever make. Before jumping in, there are several points that should be taken into consideration. Let's take a moment to examine some of the key points involved in buying or selling a business. Factor #1 - What are You Selling? Whether buying or selling a business … [Read more...]

Who Exactly Owns Personal Goodwill and Why Does it Matter?

Personal goodwill can have a profound impact on both small and medium-sized businesses. In fact, it can even impact the sales of larger companies. Ultimately, understanding how personal goodwill is cultivated is of great value for any company. During the process of building a business, a founder builds one or more of the following: a positive … [Read more...]

Around the Web: A Month in Summary

A recent poll conducted by Nationwide insurance found that “Business owners' love of work may hinder succession planning.”  Business owners with no plans to retire also tend not to plan for succession. More than 70% of business owners said they are not planning to retire, don't know when they will retire, or do not plan to retire for at least 11 … [Read more...]

When Selling Your Business, Play to Win

If you are an independent business owner, you are most likely also an independent business seller–if not now, you will be somewhere down the road. The Small Business Administration reports that three to five years is a long enough stretch for many business owners and that one in every three plans to sell, many of them right from the outset. With … [Read more...]

Similar Companies Can Have Huge Value Differences

Can two companies in the same industry have very different valuations? In short, the answer is a resounding, yes. Let's take an example of two companies that both have an EBITDA of $6 million but with two very different values. In fact, Business One is valued at five times EBITDA, which prices it at $30 million whereas Business Two is valued at … [Read more...]

There’s No Business Quite Like a Family Business

The simple fact is that family businesses are different. After all, a family business means working with family and all the good and bad that comes with it. While an estimated 80% to 90% of all businesses are family owned, relatively few are properly planning for what happens when it comes time to sell. According to one study, a whopping 72% of … [Read more...]

Around the Web: A Month in Summary

A recent article posted by The National Law Review entitled “Thinking of Selling? Start Early, Build Your Team” explains the importance of putting together a good team of trusted advisors well in advance of selling your business. Your team should include an attorney, accountant, investment banker, and wealth manager. This team will help you with … [Read more...]

The Difficult Issues Often Attached to Valuing a Business

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 fact that the person conducting the … [Read more...]

What Do Buyers Want in a Company?

Selling your business doesn't have to feel like online dating, but for many sellers this is exactly what it can feel like. Many sellers are left wondering, “What exactly do buyers want to see in order to buy my company?” Working with a business broker is an excellent way to take some of the mystery out of this often elusive equation. In general, … [Read more...]