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
It Depends. Findings from Q3, 2019 Market Pulse Survey found that for Businesses that sold for less than $500,000, it was a Buyer’s Market. For those that sold for more than $500,000, it was a Seller’s Market. However, looking at quarterly trends from the past 5 years, one sees that… Read More »Is it a Buyer’s or Seller’s Market for Selling a Business?
May your favorite team win. We are hoping for a truly enjoyable game. We are heading over to friends to enjoy the game, we all know who Lisa will be cheering for. We wish you all a great end to the weekend. Contact us if you are interested in selling… Read More »Super Bowl 2020
Findings from Q3, 2019 Market Pulse Survey and fairly consistent for the past several years, finds that almost ¾ (73.8%) of buyers who bought businesses for less than $500,000 lived within 20 miles of the purchased business. For those who bought businesses for more than $5M, three quarters (75%) lived… Read More »When It’s Time to Sell Your Business, How Close is Your Buyer?
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!
Findings from Q3, 2019 Market Pulse Survey and fairly consistent for the past five plus years, identifies the likely buyer of businesses which sold during the prior quarter. Work with your Advisor to identify the likely purchase price and then target the most likely purchaser to increase the likelihood of… Read More »When It’s Time to Sell Your Business, Who is Likely to Buy It?
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
Business owners thinking about exiting their business may be hearing the terms “platform” and “add-on” acquisitions. Understanding these terms, and knowing which category you might belong to, can help you prepare your business for a competitive, higher-value sale. Private equity firms make up a sizable buyer category in today’s market.… Read More »Platform Businesses the Belle of the Ball