Sell-side Mergers and Acquisitions.
In the M&A world, believe it or not, there are courses teaching individuals how to get the upper hand, sometimes at the cost of unsuspecting sellers. Elite institutions offer training on how to secure family-run or privately-owned businesses for the lowest possible price. Now, M&A transactions are inherently intricate, and… Read More »Navigating M&A’s Murky Waters
As you nurture a competent management team and strategize your gradual exit from daily operations, ensure you indulge in some well-deserved breaks, especially in the lead-up to a sale. Prospective buyers are on the lookout for enterprises that thrive, even in the owner’s absence. Pause for a moment and reflect:… Read More »Boost Your Company’s Worth: Embrace a 3-Week Getaway!
Picture this: after a painstaking eight-month process, we stood on the cusp of finalizing a deal, only for it to nearly fall apart just before completion. With such confidence in the imminent deal, the Seller even introduced the supposed “new owner” to customers on calls – a premature move, and… Read More »The Power of Expertise: A Tale of Two Outcomes
One of our mantras is: “Go ugly early.” When offering a business for sale, don’t hesitate to disclose potential challenges immediately, be it a recent customer loss, fluctuating backlog, or maxed-out operational capacity. You might wonder, “Won’t this deter potential buyers before they recognize the value of my business?” It might,… Read More »Go Ugly Early!
Ready to hand over the reins of your business and embrace your next adventure? You’ve poured your blood, sweat, and tears into your enterprise, creating a thriving livelihood. But here’s the million-dollar question: will a potential buyer view your business as a golden goose? At the heart of that question,… Read More »Unlocking Your Business Value: A Straight-Talk Guide for Business Owners Eyeing a Sale
When it comes to assessing the profitability of your business, you’ve probably come across two important measures: Seller Discretionary Earnings (SDE) and Normalized EBITDA. These metrics play a crucial role in determining the value of your business, but they have some key differences in how they’re calculated. Let’s break it… Read More »Unlocking Profitability: Understanding SDE and Normalized EBITDA for Your Business
As risk increases, value decreases. We talk with business owners daily who believe a buyer will pay a certain amount for their businesses. However, buyers have a different perception of its value. As Michael Marks depicts in the above tip, many owners fail to sell their businesses at the price… Read More »Increased Risk = Decreased Value
Supply chain issues are a big concern for businesses right now. Forced shutdowns, crisis forecasting, labor issues, and logistics all played (or are still playing) a part in the current shortages. Managing the supply demand imbalance will be a tricky problem for at least the next six months, if not… Read More »Supply Chain = Deal Killer
If you’ve owned your business for several years, you have already been amazingly successful! Take for instance the recent findings that Review 42 reported: 20% of small businesses fail in their first year. 30% of new businesses fail during the first two years. More than half of new businesses fail… Read More »Is it Time…?
Interest rate increases, inflation, employee shortages, conflict in the former USSR, COVID-19… In many years, any one or two of these could have put a damper on the number of businesses sold. However, business sales continue at a fevered pace. Last year, global M&A transactions totaled $5.8 trillion, 48% above… Read More »Record Breaking # of Business Sales