One of the challenges of selling a business can be finding an individual or a company that appreciates its value and is a “perfect fit” to continue the operation. But there are so many issues that can affect its desirability – geography, revenues, cash flow, employees, key employees, products, services,… Read More »Tip #085 Finding a “perfect fit” to buy the business can take time.
There are many stories of partners, investors or spouses showing up right before closings or even at closings to express their opposition to the sale. Obviously, in those situations there are existing conflicts which have not been worked out between the parties. In the early stages of planning the exit… Read More »Tip #083 Partners, Investors and Spouses must all be in agreement to sell the business.
Everything is changing so fast these days, it can be hard for a company to keep up. Business owners have to pay attention and be open minded as to what it will take to continue to grow their company – particularly with new technologies coming on line so rapidly that… Read More »Tip #082 To get maximum value, a business has to project a strong future!
In order to sell their company, business owners must disclose certain basic information such as Financial Statements and Tax Returns. And sometimes buyers will request additional information which will require the business owner to spend much more time accumulating that data. But wait there’s more! After an offer is accepted,… Read More »Tip #081 Buyers and lenders will want as much detail as possible to make a decision.
There are many items that buyers for a business will want to see, but the most critical are the Profit & Loss Statements, Balance Sheets and Tax Returns for 3 – 5 years. These documents must be current, accurate and readily available. Buyers, their accountants and advisors will closely scrutinize… Read More »Tip #080- Financial statements are a company’s report card and the key to determining business value.
Too many business owners have an inflated view of what their business might be worth or no idea at all! There are a large number of tangible and intangible items which contribute to a market evaluation — and owning the business for a number of years or working very hard… Read More »Tip #074 Be informed. Get a professional business valuation now!
In order to avoid taxes, some business owners have found ways to hide what should have been shown as profits. Sometimes it’s pocketing cash, sometimes it’s moving revenues into another year and other creative ways. But when it comes time to claim how profitable the company really is, buyers aren’t… Read More »Tip 070 “Mystery profits” may not be recognized by buyers for the business — and certainly not by lenders!
Many companies have made successful acquisitions over a period of time. But the company to be acquired must find a good fit. It must be able to be integrated into the operation, and working with both sets of employees is a strong consideration. But acquiring another company can be a… Read More »Tip #069 Acquiring another company may be a good way to increase growth and value.
Most businesses do show a revenue cycle, and selling at the top of the cycle will bring the most money. But if the revenues have dropped, or are at a low point, then offers will reflect that. Buyers are not interested in having to use their resources and efforts to… Read More »Tip #068 Timing is key, selling at the top of the revenue cycle will bring the highest dollar.
Many businesses have systems that have been in place for a long time. And some of those systems are outdated and costly. And if you ask the business owners why they do things that way, the answer might be “well, it made perfect sense at the time” or “I don’t… Read More »Tip #066 Hmm, not really sure why we do it that way…