Tip #81 – Buyers And Lenders Will Want As Much Detail As Possible To make A Decision.

Too Much InformationIn order to sell their company, business owners must disclose certain basic information such as Financial Statements and Tax Returns.

And sometimes buyers will request additional information which will require the business owner to spend much more time accumulating that data.

But wait there’s more! After an offer is accepted, business owners must be prepared to go through the due diligence process sharing many more details with the buyer and any lenders for full disclosure and to verify the financials.


2015-12-01T14:55:24-07:00December 1st, 2015|Maximizing Business Value|

Tip #80 – Financial Statements Are A Company’s Report Card And The Key To Determining Business Value.

Report CardThere are many items that buyers for a business will want to see, but the most critical are the Profit & Loss Statements, Balance Sheets and Tax Returns for 3 – 5 years. These documents must be current, accurate and readily available.

Buyers, their accountants and advisors will closely scrutinize these “report cards” which will serve as a basis to determine cash flow and value.

In preparing a business for sale, these documents need to be collected, reviewed for accuracy and […]

2015-11-03T10:09:07-07:00November 3rd, 2015|Maximizing Business Value|

Tip #79 – Preparing A Business For Sale Can Be A Challenge For Many Business Owners.

What We Have To DoWho really has time when they are trying to manage the business on a day-to-day basis?

Sometimes painful decisions have to be made, such as reducing the workforce, updating technology or changing directions. Plus, it can cost money and/or advisors need to be brought in.

But, like working out and dieting, preparing a business for sale needs to be done to get the maximum benefits!


2015-10-05T13:37:16-07:00October 5th, 2015|Maximizing Business Value|

Tip #78 – Are The Profit Margins As Good As They Can Be?

Profit MarginBuyers for businesses usually are looking for companies with a track record of strong profit margins.

But oftentimes, the business owner has gone too long avoiding raising prices or has been complacent in finding a better deal from vendors.

If a company’s costs are too high and/or prices too low, the business owner must take every step possible to make the profit margins attractive to potential buyers.

Low profit margins will negatively affect the valuation and sale price of a […]

2015-09-01T10:07:10-07:00September 1st, 2015|Maximizing Business Value|

Tip #76 – Using The Right Kind Of Attorney Is Essential In The Sale Of A Business.

76_right_attorneyJust like there are doctors who have various specialties, there are attorneys who have different specialties as well. The sale of a business requires an attorney who has strong experience in business transactions.

Oftentimes a seller or a buyer wants to use the services of a trusted attorney they have known for a long time.

But the truth is, it is much more important to use a mergers and acquisitions attorney who understands the goals of both parties, the inherent risks of a business deal, and yet appropriately […]

2015-06-29T12:00:07-07:00June 29th, 2015|Maximizing Business Value|

Tip #75 – Does The Business Show Well?

Curb AppealAs we all know, you only make the first impression once. And yes, there is “curb-appeal” to a business.

So it is important that the company looks good to prospective buyers. When tours are given, the flow to the operation should make sense and look efficient. And the facility should be clutter-free and without unused equipment just sitting around to raise questions.

After the buyers leave the building, they will have a picture in their mind as they begin negotiations. And that picture should impress!

2015-05-12T09:43:32-07:00May 12th, 2015|Maximizing Business Value|

Tip #74 – Be Informed. Get A Professional Business Valuation Now!

Value ShockToo many business owners have an inflated view of what their business might be worth or no idea at all!

There are a large number of tangible and intangible items which contribute to a market evaluation — and owning the business for a number of years or working very hard over those years are not the most important.

In order to plan for growing the business, obtain a loan or sell the business, it is critical to get a range of market values performed by a professional […]

2015-04-02T09:48:06-07:00April 2nd, 2015|Maximizing Business Value|

Tip #73 – Selling A Business Takes A Team Of Professional Advisors.

Loan RejectionManaging a business on a day-to-day basis is not the same as selling a business.  It takes different expertise and knowledge of the marketplace.

The business owner must have the books in order, identify true profitability of the business, understand tax implications, have key employees in place, prepare facilities to make a good impression and many other issues.

It is highly recommended that a business owner build a team of accounting, legal and, most importantly, mergers and acquisitions professionals to prepare the business for sale and to […]

2015-02-24T11:48:25-07:00February 24th, 2015|Maximizing Business Value|

Tip #72 – Will The Company Qualify For A Business Acquisition Loan?

Loan RejectionThere are many reasons that buyers of businesses are turned down for acquisition loans. Oftentimes the price of the business is too high and the cash flow of the business can’t support servicing of the debt.

Sometimes the assets to be used for collateral are inadequate. But the banks and the SBA look at other criteria, such as the buyer’s credit rating and their qualifications to operate and manage the business.

At the very least, business owners must make sure their company fits all the criteria that […]

2015-01-27T10:15:55-07:00January 27th, 2015|Maximizing Business Value|

Tip #71 – A Successful Marketing Plan That’s In Place Can Increase The Value Of A Business!

71_no_marketing_planBuyer’s intentions are to grow the business, and they will be impressed with a company that has a proven marketing plan that will continue increasing revenues.

In addition to the traditional methods of sales and marketing for their particular industry, business owners should create a written marketing plan that takes advantage of today’s marketing techniques, which may include email campaigns, social media and attractive, functioning websites.

Click here for a Marketing Plan Template.

2014-11-20T09:27:24-07:00November 20th, 2014|Maximizing Business Value|
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