In order to avoid taxes, some business owners have found ways to hide what should have been shown as profits.

Sometimes it’s pocketing cash, sometimes it’s moving revenues into another year, and other creative ways.  But when it comes time to claim how profitable the company really is, buyers aren’t buying it, lenders turn their heads and laugh, and due diligence can destroy a deal.

In order to get that top dollar price, businesses must show all profits over a period of years.

Many companies have made successful acquisitions over a period of time.  But the company to be acquired must be a good fit.

It must be able to be integrated into the operation, and working with both sets of employees is a strong consideration.

But acquiring another company can be a great strategy to accelerate growth rather than wait for the normal internal growth.  New products, new customers, new equipment and valuable employees can be obtained and the value of the acquiring company can be maximized.

Most businesses do show a revenue cycle, and selling at the top of the cycle will bring the most money.

But if the revenues have dropped, or are at a low point, then offers will reflect that.  Buyers are not interested in having to use their resources and efforts to return the revenues to where they were.

If business owners do not have the vision or the energy to move the revenues and profits back up to a higher level, then they […]

An operations manual is a comprehensive documentation of how a company functions.

If written correctly, it should guide someone unfamiliar with the company through the day-to-day procedures for operating the business. Not only does creating a manual help an owner organize the company and help it to run more efficiently, but it can help in the sale of the business.

Showing prospective buyers that there is a manual can let them know that the business is well-organized and that it will be easier to learn the business. […]

Many businesses have systems that have been in place for a long time.  And some of those systems are outdated and costly.

If you ask the business owners why they do things that way, the answer might be, “well, it made perfect sense at the time” or “I don’t remember why”!

During the planning process before putting their company on the market, business owners should review all their systems to make sure they are updated, productive and cost-effective.  Showing well-run systems can make a real difference […]

One of the big questions that is quickly asked by a buyer are the lease terms of the space that the business occupies.

Buyers will look at the lease based on their future plans for the business.  Can the lease be transferred to a new owner or could a new owner move out quickly if desired?  Are the lease terms favorable or possibly objectionable?

Business owners who may be looking to exit their business at some point, must try to anticipate the impact on prospective buyers before […]

The beginning of partnerships in business can be very exciting and filled with great expectations of success for the future.

But as in marriages, things change, stuff happens and partners are not always as compatible as they appear.   If problems start brewing, it is critical that the partners find a way to express themselves to each other and agree on an immediate course of action.

If the problems aren’t addressed, the value of the business will surely go down and no one will be satisfied.

Business owners oftentimes want more money for their companies than buyers are willing to pay.

Owners must realize that there are many factors that make a business sellable, but cash flow is still the most critical issue. They must understand the elements of cash flow and how it affects the price.

It can be very helpful to work with a business broker or mergers & acquisitions advisor to begin the planning process to be able to put the business on the market for top dollar when the […]

Changes in the marketplace and technology are moving so fast these days that many business owners are having trouble keeping up.  And if the business doesn’t have a strong future, it obviously will not sell for top value or maybe won’t have any value at all.

Business owners must constantly be aware of what is happening in their industry and their own markets to see what steps they must take to ensure the strength and value of their company when they are ready to sell.

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There are many emotional issues that can make the process of selling a business very stressful.

The negotiation over the price is usually the big one, but there are many others.  Sellers are usually very concerned about what will happen to their employees; and then there is the whole idea of leaving the company behind and moving to a new chapter in their life.

Sellers must know that it is common for the process to be filled with emotional ups and downs and must be prepared to […]