A business rarely goes from healthy to distressed overnight. More often, trouble develops gradually through a series of warning signs that an owner may overlook while focused on the day-to-day demands of running the company. A lack of focus, weak…
When you’re selling a business, it’s natural to focus on the number you want to receive. But experienced sellers know that a successful transaction involves much more than agreeing on a price. The amount of cash changing hands, the financing…
One of the most important decisions a business owner makes when preparing to sell is determining the right asking price. It is natural to want the highest possible value for a company built through years of hard work, sacrifice, and…
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…