The statement “with a little sales and marketing, a new owner could make a fortune with my business” has been heard over and over by prospective buyers. The question of course is: “Mr./Ms. Business Owner, why haven’t you made that effort”? Buyers are not willing to pay the business owner… Read More »Tip #12 My Business Could be a Gold Mine for a New Owner!
Findings from Q3, 2019 Market Pulse Survey and fairly consistent for the past five plus years, identifies the likely buyer of businesses which sold during the prior quarter. Work with your Advisor to identify the likely purchase price and then target the most likely purchaser to increase the likelihood of… Read More »When It’s Time to Sell Your Business, Who is Likely to Buy It?
Reporting a lower inventory to their accountant is something many business owners have been doing for a long time. And many accountants just accept the number. In addition to the obvious concerns, when it comes to selling the business, big problems can arise. How will the inventory be valued in the Purchase Allocations? And… Read More »Tip #7 Understating Inventory
Business owners thinking about exiting their business may be hearing the terms “platform” and “add-on” acquisitions. Understanding these terms, and knowing which category you might belong to, can help you prepare your business for a competitive, higher-value sale. Private equity firms make up a sizable buyer category in today’s market.… Read More »Platform Businesses the Belle of the Ball
Your business is on the market and you’re looking forward to that glorious day when you can let go of the pressure and responsibilities of ownership. But don’t let those future plans distract you from what’s going on today. It’s critical that you keep running your business as usual. From… Read More »Can’t Stop, Won’t Stop
Market Pulse Survey – 3rd Quarter 2019 Presented by IBBA, M&A Source and in Partnership with Pepperdine University Research shows that only 20-33% of businesses for sale actually sell. The reasons for not selling are numerous, however, the Market Pulse Report has consistently found that unrealistic value expectations by the Seller… Read More »#1 Reason Businesses Do Not Sell
In a recent conversation with a Business Owner seeking to sell a 10-year-old business, we discovered that there were many personal relationships intertwined with their business ones. The major issues: the Owner’s brother-in-law’s company provided the major raw material while a childhood friend provided additional goods. Additionally, other suppliers had… Read More »Are Your Vendors Personal Relationships?
Delta Business Advisors is reflecting on these quotes from Dr. King on this day of remembrance. “If you can’t fly then run, if you can’t run then walk, if you can’t walk then crawl, but whatever you do you have to keep moving forward.” “Life’s most persistent and urgent question… Read More »Delta Business Advisors wants to wish you a great Martin Luther Kings day.
Good profit margins are important. Too many business owners are scared to death to raise prices for fear of losing customers. In many cases, competition does make it difficult. But there are many situations if business owners would do some research, they would find out there isn’t as much resistance as… Read More »Tip #6 Business Owners Who are Afraid to Raise Prices!
If a Business Owner has a physical or electronic Rolodex with one or more key customers that they have dealt with exclusively, then a Buyer may become much less interested in buying the business, especially at a premium. Put yourself in the Buyer’s shoes. The thought in the forefront of… Read More »Are Customers Only in Your Rolodex?