Maximizing Business Value | Front Range Business, Inc.

Tip #91 – Does The Company Have A Customer Concentration Issue?

Losing Our Biggest Customer In many types of businesses, “customer concentration” can be a real concern, with a few big customers that make up a substantial portion of the company’s revenues.

Buyers, of course, are concerned that if any of those big customers leave after the sale closes, the Buyer is not getting the company’s present value.

If a company has too much customer concentration, business Seller needs to try to diversify the customer base or be willing to accept a flexible method of payment […]

Front Range2017-01-10T15:28:42-07:00January 10th, 2017|Maximizing Business Value|

Tip #90 – Clean Up The Financials!

Clean Financials Business owners can manage their financials as they wish – within standard accounting principles. But when it comes time to sell their company, it becomes a whole new ball game.

Buyers and lenders will scrutinize everything, especially questionable items on the financials. If there are items that do not make sense to outsiders, it can affect the value and the pricing of the business.

It is a good idea to have a professional such as a mergers & acquisitions advisor or a business […]

Front Range2016-11-08T08:52:11-07:00November 8th, 2016|Maximizing Business Value|

Tip #89 – The Owner Of The Business May Not Be Ready To Retire

Business Needs A New Owner Many older business owners, for whatever reason, aren’t willing to sell their companies.

But businesses can go into decline without new ideas, new direction, and new energy. Not selling the company can be risky. Too many things can go wrong as the owner continues to age — health issues, health issues of spouse, or the business can’t keep up with the times.

It can be a tough decision, but timing is everything, and waiting too long to sell may have […]

Front Range2016-11-08T08:49:04-07:00November 8th, 2016|Maximizing Business Value|

Tip #88 – Explore New Worlds To Increase Revenues Of The Business

Exploring New Opportunities A company that is growing will get greater attention from buyers and show higher value.

Business owners have to be creative in finding new ways to increase their sales. That could mean researching on the internet, going to trade shows or conferences or traveling to other markets to find what is working out there.

Options can include new products or services, new ways of marketing, new technologies, new locations or even acquiring other companies.

Front Range2016-09-08T10:10:19-07:00September 8th, 2016|Maximizing Business Value|

Tip #87 – Reasons Not To Buy The Business.

Messy Business A good approach to improve value in a business is to identify any negatives that might turn a buyer off.

Look at the financials, the operation, the facility, employees — everything. Be honest and not in denial! Enlist the help of advisors or even friends and have them walk through the operation.

Fixing the problems might take time or money, but if the business owner can’t solve the problems, it can mean buyers making lower offers or walking away.

Front Range2016-08-03T09:21:37-07:00August 3rd, 2016|Maximizing Business Value|

Tip #86 – Having A Strong, Motivated Management Team In Place Can Make A Difference In The Salability Of A Company.

Organizational Chart Buyers for businesses look for companies that have a good management team that can run the operation.

Business owners must take the time to build that team. That means hiring and training these executives and managers.

This is not always easy, but it is a critical part of the planning for the owner to someday exit the business.

Read the article “Build Your Management Team” from Entrepreneur Magazine.

Front Range2016-06-29T11:08:01-07:00June 29th, 2016|Maximizing Business Value|

Tip #85 – Finding A “Perfect Fit” Buyer For A Business Can Take Time.

It Doesn't Fit One of the challenges of selling a business can be finding an individual or a company that appreciates its value and is a “perfect fit” to continue the operation.

But there are so many issues that can affect its desirability – geography, revenues, cash flow, employees, key employees, products, services, property lease, equipment leases – the list goes on and on.

Business owners must be prepared to go through a process that can find buyers who seem truly interested, but then […]

Front Range2016-06-29T11:05:57-07:00June 29th, 2016|Maximizing Business Value|

Tip #84 – Will The Business Really Sell For A Lot Of Money?

Beachfront Condo So how much money is a company really worth? It can be complicated.

There are many issues that may need to be addressed. All businesses have strengths and weaknesses that will affect value.

Has the business owner taken steps over time to prepare the business for sale? Getting a business valuation from a professional is an important part of the process.

Read this article from Inc. Magazine on “Preparing Your Pre-Sale To-Do List.”

Front Range2016-06-29T10:56:55-07:00June 29th, 2016|Maximizing Business Value|

Tip #83 – Partners, Investors, And Spouses Must All Be In Agreement To Sell The Business.

Stop The Closing There are many stories of partners, investors or spouses showing up right before closings or even at closings to express their opposition to the sale.

Obviously, in those situations there are existing conflicts which have not been worked out between the parties.

In the early stages of planning the exit of a business, the majority owner must make sure everyone agrees that they are willing to sell at an agreed upon price and terms and will be willing to sign the […]

Front Range2016-06-29T10:55:45-07:00June 29th, 2016|Maximizing Business Value|

Tip #82 – To Get Maximum Value, A Business Has To Project A Strong Future!

You Cannot Fall Behind Everything is changing so fast these days, it can be hard for a company to keep up.

Business owners have to pay attention and be open minded as to what it will take to continue to grow their company – particularly with new technologies coming on line so rapidly that can impact products, services and the marketplace.

When it comes time to sell the business, buyers will look at not only the historical record, but if the business is positioned […]

Front Range2016-06-29T10:51:48-07:00June 29th, 2016|Maximizing Business Value|