Many business owners are afraid to sell their business because they don’t know what they will do afterward. This can be a big mistake because they aren’t motivated to continue growing their company, jeopardizing its value when they do sell. Business owners need to seriously explore the many opportunities that… Read More »Tip #058 “What will I do if I sell the business?”
It’s not unusual for the children of a business owner to not have any interest in the family business. It can be for many reasons — outdated business, want to move out of town, disagreements with the business philosophy of the parents or just plain not interested. If this is… Read More »Tip #057: Kid(s) don’t want to take over the business?
One of the saddest and most difficult situations for a business is when the owner becomes too ill to effectively manage the business. Unfortunately, because many owners haven’t done proper planning, they try to continue to run their business while coping with their illness. The owner suffers and the business… Read More »Tip #056 Health Issues Can’t Be Ignored!
OK, everyone has heard about a few huge deals for technology companies over the years. But business owners rarely receive a premium for their business. Buyers will look at all the important factors such as cash flow, key employees in place, profit margins and prospects for future growth, to name… Read More »Tip #052 Someone is Going to Throw Money at Your Business? Really?
Business owners can be confronted with many yes or no decisions every day. Some are small decisions with not much impact, but some are critical decisions that can affect the direction of the company, such as adding a new line of products or a new service. And many times, it… Read More »Tip #51 The Power of “NO”
Most businesses will lose a certain amount of customers over time. This attrition can be caused by anything from customers who are unhappy to customers moving away. The value of a business has a lot to do with the expectations of a buyer being able to maintain the current revenue levels (in… Read More »Tip #050 Marketing programs to replace normal attrition.
Buyers are always interested to know if there are well-trained key employees that will stay with a new owner of the business. That expertise within the company’s operations can be very important in the transaction and future performance. Key employees can include top managers, department heads and other long-time employees… Read More »Tip #049 Key employees in place can be very important in the sale of a business!
“Due Diligence” or the “Right of Inspection” gives the buyer the full rights to inspect all items in a business — financials, equipment, inventory, premises and anything else. And if the buyer finds any material discrepancies, he or she usually has the legal option of backing out. Some transactions fall… Read More »Tip #047 Sellers must prepare their business for due diligence!
No matter what price a business owner wants for his or her company, the market is the true indicator of what buyers are willing to pay. Selling a business can be very emotional – all the hard work over the years, attachment and loyalty to employees, the profitability in the… Read More »Tip #046 Business owners and the “Writing on the Wall”!
Many business owners try to determine the price of their business based on how hard they have worked over the years. But the market will tell them that the value is really what it is worth to a new owner in the future. As a result, there are many factors… Read More »Tip #045 – How did you come up with that number?