Many business owners wonder whether their industry will determine how easy it is to sell their business. While certain industries may experience periods of higher demand than others, buyers rarely make decisions based on industry alone. More often, they focus…
When business owners hear the term goodwill, they often assume it simply means having a good reputation. While reputation certainly plays a role, goodwill has a much broader meaning when it comes to valuing and selling a business. In simple…
When business owners begin thinking about selling, it’s easy to picture a single type of buyer. In reality, businesses attract a wide variety of buyers, each with different motivations, financial resources, and long-term goals. Understanding who these buyers are can…
Selling a business isn’t just about finding someone with the financial resources to make an offer. It’s about finding the right buyer; someone who is confident enough to take one of the biggest professional and financial steps of their life.…
For many business owners, the business is their largest financial asset. Yet surprisingly, many couldn’t tell you what it’s worth. That may not seem like a problem if you’re not planning to sell anytime soon. But understanding the…
When considering the value of your company, there are basic value drivers. While it is difficult to place a specific value on them, one can take a look and make a “ballpark” judgment on each. How does your company look?…
Business valuations are almost always difficult and often complex. A valuation is also frequently subject to the judgment of the person conducting it. In addition, the person conducting the valuation must assume that the information furnished to him or her is…
Consider two different companies in virtually the same industry. Both companies have an EBITDA of $6 million – but, they have very different valuations. One is valued at five times EBITDA, pricing it at $30 million. The other is valued at seven times EBITDA,…
There is the old anecdote about the immigrant who opened his own business in the United States. Like many small business owners, he had his own bookkeeping system. He kept his accounts payable in a cigar box on the left…
Business owners are usually too busy running their business to deal with the fact that retirement will arrive one day. Ultimately, every business owner walks away from their business. The sooner you start preparing for that day, the better off…
Your employees are the heart and soul of your business. Therefore, if you want a thriving business, you need to put their satisfaction at the top of your list. After all, if your employees are not happy, this level of…
Obviously, serious buyers want to carefully look at the financials of a company under consideration and all of the other major aspects of the company. However, there are a few other areas that the serious buyer will investigate that sellers…