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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 And some of those systems are outdated and costly.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…

One of the big questions that is quickly asked by a buyer are the lease terms of the space that the business occupies. Buyers will look at the lease based on their future plans for the business. Can the lease be transferred to a new owner or could a new… Read More »Tip #066 Hmm, not really sure why we do it that way…

One of the big questions that is quickly asked by a buyer are the lease terms of the space that the business occupies. Buyers will look at the lease based on their future plans for the business. Can the lease be transferred to a new owner or could a new… Read More »Tip #065 Will the building lease help or hurt the sale of the business?

The beginning of partnerships in business can be very exciting and filled with great expectations of success for the future. But as in marriages, things change, stuff happens and partners are not always as compatible as they appear. If problems start brewing, it is critical that the partners find a… Read More »Tip #064 Partnerships can be difficult, but the problems must be addressed!

Business owners oftentimes want more money for their companies than buyers are willing to pay.  Owners must realize that there are many factors that make a business sellable, but cash flow is still the most critical issue. They must understand the elements of cash flow and how it affects the price. It can be… Read More »Tip #063 Selling Price Must Be Justified & Competitive!