“Immense satisfaction tinged with loss.” That’s how one business owner described selling his business. After putting years of hard work into building a business, many owners have a hard time letting go. Emotions run high … and those emotions can lead to some regrettable decisions. As advisors, part of our… Read More »What Does It Feel Like When You Sell?
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Delta Business Advisors wishes all our clients, partners, future clients, and every one a great president’s day. Yes, we are open if you have inquiries or need our services. Presidents Day falls every year on the third Monday in February. In 2020, that is Feb.17. The federal holiday was originally… Read More »Happy Presidents Day 2020
It’s Valentine’s Day—a great reason for letting you know how much we appreciate you. Enjoy the day!
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!
Earnouts are used to bridge a valuation gap between a buyer and a seller. It’s a compromise, of sorts, to break a purchase-price deadlock when the seller wants more than the buyer is willing (or able) to pay. In an earnout, a portion of the purchase price is paid out… Read More »Earnouts: Breaking the M&A Deadlock
It is time to get started! Findings from Q3, 2019 Market Pulse Survey found that for Businesses that sold for less than $500,000, took an average of 6 months to while those that sold for more than $5M, took almost twice as long. It is important to note that having… Read More »Thinking of Selling Your Business this Year?
In Q3, final sale prices came in anywhere from 85% to 109% of the pre-set asking price or internal benchmark. Lower Middle Market companies in the $5M-$50M range achieved the highest values at 109% of benchmark. Businesses with values of $5 million or more typically do not have a published… Read More »Asking Price vs Actual Purchase Price
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
An exclusivity clause is an important part of M&A transactions. Also known as a ‘no shop’ provision, it prohibits the seller from sharing information or negotiating with other would-be buyers for a specified timeframe. Prior to this, the seller is negotiating with several buyers. The goal is to entertain multiple… Read More »Exclusivity Clause Protects Buyer Investment in M&A