“It was a real pleasure working with both Matt and Paul. From our very first meeting all the way through close they showed the utmost professionalism and attention to detail.”
“They never hesitated answering our questions and considering any concerns about the process with the utmost care. Overall it was a great experience working with Front Range.”
Joel and Rick Hawkins
Owners
TreadWright, Inc.
Business owners must never stop learning how to improve the sales, profitability and value of their businesses.
Smart owners oftentimes find solutions to their problems by using search engines such as Google, Yahoo and Bing. And the increasingly popular YouTube has thousands of videos with tutorials and webinars on a huge variety of subjects such as “How to Use QuickBooks”.
Just type in “how to ______ ” and see what information is available. Yes, there can be many distractions, but if you stay focused, there is some very […]
The hard truth is, many businesses will sell at a low price or not sell at all. Why? Because those business owners don’t understand how to create value and minimize risk for a new owner. Or they don’t understand how a business is sold.
Business owners need to learn how buyers will view their business – their financials, location, key employees, equipment, technology and many other critical items. And they need to recognize how the market will react to the price of their business.
Contacting a professional and […]
Oftentimes, sellers want to go to market with a very high price, hoping buyers will appreciate the value that the seller sees. Sellers figure that buyers will at least take the first step to check out their business.
Unfortunately, there are many qualified buyers who won’t even look at a company if they think the price is out of line with economic realities. Even sophisticated buyers who are used to negotiating business transactions will walk away without looking.
Should a business be listed at a higher price anticipating […]
If a company is on a downward trend, many business owners think they can bring their companies back from a business valuation that does not meet their expectations.
But it takes reinvigorated energy that many business owners no longer have. Very few companies can make that leap back to new heights without a strong drive, clear vision and robust leadership from the owner.
Sometimes it is best to recognize the reality of the situation and exit the business before it goes any further downhill.
Many business owners aren’t familiar with the principles of accounting. They need to understand their profit and loss statements and balance sheets so they can make good management decisions.
They also need to understand their financials when dealing with banks, tax returns and negotiating for the sale of their company.
If business owners don’t have a background in accounting principles, they should consider taking basic courses at a local community or technical college. It can make a real difference in creating profits and maximizing the value of their […]
Many business owners and their accountants are absolutely fixated on minimizing taxes by showing no income. But this can be misguided planning for trying to get top dollar when selling the company.
Business owners need to realize that valuation is usually determined by a multiple of profits, or identifiable cash flow, and that banks make acquisition loans based on tax return results.
Reducing taxes can be a good short term strategy, but it might not pay off at the end!
Yes, it’s overwhelming. There is so much new technology invading our world it can be hard to understand and realize its impact.
Business owners have to figure out what might help their businesses grow. Whether it be email campaigns, social media, e-commerce, more functional websites, cloud computing or new equipment, business owners need to embrace it.
Businesses that do not keep up with the new technologies may find their companies difficult to sell!
Click here for an excellent article on “Six Rules of Technology.”
Most business owners think their business should be priced more than it’s worth — mainly because of all of their hard work over the years.
But they have to realize there are certain economics and realities that dictate the price. Besides the various methods of business valuation, the cash flow ultimately must provide the new owner a return on cash investment, ability to service debt and a reasonable salary for the owner and/or manager.
Unfortunately, too many business owners find major disappointment because the marketplace has not accepted […]
Most business owners assume that when they are ready to sell their business, buyers will be plentiful, that they will receive all cash at closing and that they will be able to exit the business shortly after the sale. The reality is that only one out of five businesses (20%) which go to market actually sells, many for far less than sellers expected and even fewer for all cash.
Most sellers carry part of the business sale in the form of a note and many have to stay for longer than desired […]