Business owners don’t always understand how business valuations are performed, and they oftentimes don’t agree with the number. They first need to understand how their company’s cash flow is computed. It starts with determining the “Add Backs” — expenses that are added to the profits to derive EBITDA (earnings before… Read More »Tip #92 Business Valuations – Understanding “Add Backs”
What a WATT morning! We went from Arizona’s water future, to financial empowerment, to health insurance realities — all before lunch! Annmarie opened our eyes to just how Arizona uses water, including the impact of agriculture, municipalities and industry, the realities of our megadrought, and the proactive steps Arizona has… Read More »WATT Power
Selling to an employee or management team can be a powerful legacy option. The buyer knows the business.Employees may feel secure.Customers may experience less disruption.The owner may feel the company is in trusted hands. This can be especially meaningful for owners in smaller Arizona communities where the business is part… Read More »Employee and Management Buyouts: Loyalty Meets Structure
Sometimes the best buyer is already inside the company. A general manager.A key employee.A leadership team. They know the customers, culture, and operations. But wanting to buy the business and being able to buy it are very different things. This Thursday, I’ll explain what owners should consider. If an employee… Read More »Your Best Buyer May Already Work for You
Business owners can manage their financials as they wish (within standard accounting principles). But when it comes time to sell their company, it becomes a whole new ball game. Buyers and lenders will scrutinize everything, especially questionable items on the financials. If there are items that do not make sense… Read More »Tip #90 Clean up the Financials!
Many older business owners, for whatever reason, aren’t willing to sell their companies. But businesses can go into decline without new ideas, new direction and new energy. Not selling the company can be risky. Too many things can go wrong as the owner continues to age — health issues, health… Read More »Tip 89 The owner of the business may not be ready to retire, but the business may be ready for a new owner.
Many owners hear “family office” and think long-term, patient, and relationship-focused. That can be true. But not always. A family office may be an excellent buyer for an Arizona business owner who wants continuity, legacy protection, and a thoughtful transition. Some family offices prefer to hold businesses for the long… Read More »Family Offices: Patient Capital or Just Another Buyer?
A family office may sound patient, sophisticated, and long-term. Sometimes it is. But the label does not tell you whether they are the right buyer. This Thursday, I’ll explain what owners should ask before assuming a family office is a good fit. Understand the buyer behind the label before deciding… Read More »A Family Office Sounds Good — But Is It?
Search funders are becoming more common in the lower middle market. A search funder is typically an individual or small team looking to acquire and operate a privately held business. Some are backed by investors.Some are self-funded.Some are experienced operators.Some are still learning what ownership really means. For the right… Read More »What Business Owners Should Know Before Engaging with a Search Funder
Wow — what a great way to start a Wednesday morning. Our bi-annual WATT meeting had a little bit of everything: business, leadership, gratitude, celebration, and the kind of real support that makes this group so special. We started by thanking Dorie Morales for leading us over the past six months and Dyan… Read More »Shared Strength