Many companies have a single customer or a few large customers that dominate their overall sales. After all, nobody wants to turn down business! But when it comes time to sell the company, this becomes a huge problem. Most buyers won’t look at a business whose revenues could drop dramatically after closing from… Read More »Tip #16 What about that Big Customer?
Many business owners seem unable to let go of their company and wait too long. Some lose their entrepreneurial drive and the business starts sliding. Or the market starts to change and the company loses value. To get the maximum price, owners need to do some serious planning to prepare… Read More »Tip #15 Timing is Everything!
Special relationships that business owners have developed with customers and/or vendors can be a real issue when selling the business. A new owner may have a problem continuing that relationship and this could jeopardize the sale of the business. It is recommended that business owners begin delegating any special relationships… Read More »Tip #14 Special Relationships with Customers and/or Vendors Tip
The statement “with a little sales and marketing, a new owner could make a fortune with my business” has been heard over and over by prospective buyers. The question of course is: “Mr./Ms. Business Owner, why haven’t you made that effort”? Buyers are not willing to pay the business owner… Read More »Tip #12 My Business Could be a Gold Mine for a New Owner!
Reporting a lower inventory to their accountant is something many business owners have been doing for a long time. And many accountants just accept the number. In addition to the obvious concerns, when it comes to selling the business, big problems can arise. How will the inventory be valued in the Purchase Allocations? And… Read More »Tip #007 Understating Inventory
Good profit margins are important. Too many business owners are scared to death to raise prices for fear of losing customers. In many cases, competition does make it difficult. But there are many situations if business owners would do some research, they would find out there isn’t as much resistance as… Read More »Tip #006 Business Owners Who are Afraid to Raise Prices!
Some businesses can’t survive without the owners trying to do everything themselves. And there are no key employees in place to help manage the operations. Buyers for businesses like these may be concerned if they themselves can’t replace the skills and experience of the owner. As a result, these businesses… Read More »Tip #005 Business Owners Who Do It All!
Business owners must be pro-active to reverse any downward trends and they must initiate a plan immediately! They cannot be complacent and just hope for the best. They must consider bold or even painful moves such as drastically cutting expenses and staff, adding new product lines or services, hiring a marketing consultant… Read More »Tip #011 Business Owners Must Make Bold Decisions in Tough Times!
Business owners are so busy running their companies every day, they never seem to have time to plan for exiting the business. But they can’t avoid planning for this critical time in their lives. Presenting a business for sale is very different than managing it with the business owner’s personal management style… Read More »Tip #009 Lost Exit Plan
Unfortunately, most business owners have a very inflated view of the value of their company. And why not? They have put so much money, time and heart into it. But they need to realize the price is based on what someone else is willing to pay for it. Periodically having… Read More »Tip #008 Realistic Expectation of Business Value