Some of the sellers we have worked with have the approach that “it’s all or nothing. You WANT my business, you SHOULD want my business and I don’t NEED to negotiate.” Yikes! Business peers, friends and family might be saying that their business is worth $2 million when the financial statements and other variables show […]
Current Financial position and historical records are the major factors in putting a value on a business. Last week the focus came down to trust issues around the financials. This week we’ll focus on the numbers. Definition of Cash Flow: owner salary, net profit, depreciation, interest expense, and discretionary expenses not necessary for continuing operations […]
One of the biggest struggles we have with our entrepreneur clients is that they have lousy financial statements. Many times it’s from lack of caring and know-how, but sometimes it’s done intentionally. How does a professional advisor, such as a banker, lawyer, accountant, or business broker advise their client when the business financials consist of […]
Over the next several weeks you will read about keys to business value. These are some basic drivers that will make your business or the business you are pursuing, more (or less) valuable. We are talking about the attractiveness to a potential buyer in an open market. Disclaimer: There are lots of different things that […]
We spent the better part of 2009 and 2010 trying to chase bankers who were not returning phone calls. There were many banks changing hands and were not able to pursue loans for business acquisitions. Over the last year, we have witnessed banks being more “aggressive” in seeking business clients. They have money that they […]
We enjoy sharing success stories about the buyers and sellers that we work with. We had a business owner with a technology based company that wanted to sell. They were asking $950K for the business based on the current revenue stream. (This was all happening in the middle of 2011.) Potential investors were concerned that […]
Capital gains taxes will be going up from 15% to potentially 25% in 2013. If you are doing a deal that is valued at $1M, that can make a big difference in what you are able to put in the bank after selling your business to the tune of $100K. If you are close to […]
This is another real world story of the interesting situations that we find when brokering deals. We had a great business with great cash flow and great products. On the surface, everything looked like this was a business that could be sold at 3 or 4 times cash flow. When we dug deeper, we found […]
We love to tell real world stories about what happens when buyers and sellers come together to try and do a deal. Recently, an owner agreed to finance 50% of the purchase price of their business. As the due diligence process began, the type of questions that the buyer was asking became a red flag […]
We are proud to announce that we have expanded our core service offerings to include Business Valuation. It is not a requirement of our clients to have a valuation analysis performed. However, since it is not required, this tends to reduce the importance of this process in the mind of the seller. Business Valuation is […]
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