Tip #93 – Why Use An Experienced Mergers & Acquisitions Professional?

No Payback On Shareholder LoansSelling a business is usually not easy. It can be a complicated process because of all of the many elements to a business – location, leases, equipment, employees, receivables, payables, etc., etc.

The price of a business is obviously important, but so are the terms – how and when the payments are made. And there are the many issues in which the seller doesn’t always realize the ramifications of what can happen after the closing.

It is critical for business […]

2017-03-07T10:59:25-07:00March 7th, 2017|Maximizing Business Value|

Tip #92 – Business Valuations – Understanding “Add Backs.”

No Double DippingBusiness owners don’t always understand how business valuations are performed, and they oftentimes don’t agree with the number.

They first need to understand how their company’s cash flow is computed. It starts with determining the “Add Backs” – expenses that are added to the profits to derive EBITDA (earnings before interest, taxes, depreciation and amortization) or SDE (Sellers Discretionary Earnings – used for smaller businesses).

Find out more: “What Add Backs Are Legitimate in an […]

2017-02-07T13:28:03-07:00February 7th, 2017|Maximizing Business Value|

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

Losing Our Biggest CustomerIn 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 […]

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

Tip #90 – Clean Up The Financials!

Clean FinancialsBusiness 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 […]

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

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

Business Needs A New OwnerMany 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 […]

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

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

Exploring New OpportunitiesA 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.


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

Tip #87 – Reasons Not To Buy The Business.

Messy BusinessA 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.


2016-08-03T09:21:37-07:00August 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 ChartBuyers 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.


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

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

It Doesn't FitOne 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 […]

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

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

Beachfront CondoSo 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.”


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