A company that is growing will get greater attention from buyers and show higher value. Business owners have to be creative in finding new ways to increase their sales. That could mean researching on the internet, going to trade shows or conferences or traveling to other markets to find what… Read More »Tip #088 Explore new worlds to increase revenues of the business.
A good approach to improve value in a business is to identify any negatives that might turn a buyer off. Look at the financials, the operation, the facility, employees — everything. Be honest and not in denial! Enlist the help of advisors or even friends and have them walk through… Read More »Tip # 087 Reasons not to buy the business.
Buyers for businesses look for companies that have a good management team that can run the operation. Business owners must take the time to build that team. That means hiring and training these executives and managers. This is not always easy, but it is a critical part of the planning… Read More »Tip #086 Having a strong, motivated management team in place can make a difference in the sellability of a company.
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!