Small Business Acquisitions Grow 10% in Q1
Small business acquisitions grew 10% over the previous year and 3% over the previous quarter, according to BizBuySell’s Insight Data, which tracks and analyzes U.S. business-for-sale transactions and sentiment from business owners, buyers, and brokers. A total of 2,384 businesses changed hands in the first quarter, representing an enterprise value of $1.8 billion, which is […]
Size Matters & Industry Matters
Size Matters / The Industry Matters Several months ago, we were working with a client to complete a market value analysis. In addition to the conclusion of value (range), we identified several potential obstacles that if eliminated or mitigated would increase the value significantly. The client, wanting to maximize the price and her proceeds from […]
Know Where You Are At BEFORE Planning Where You Are Going
Analyze your company across the following criteria. You may realize that there are some easily achievable changes that will increase your company’s value. Goodwill – Does your company contain “personal goodwill” or “entity goodwill”? Does the goodwill reside with only you making it more difficult or risky to transfer to a buyer? Does goodwill also […]
Understanding Earnings Adjustments
Most owners of small to medium size businesses (SMB) use every legal trick in the book to avoid paying a penny more federal and state tax than they absolutely must. You probably know that one of the biggest advantages of owning a small business is having the opportunity to use the business to minimize your […]
The SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats)
At some point in the future, you will consider selling your company. Before you arrive at that moment consider increasing the enterprise value of your company NOW by performing a SWOT analysis and make important improvements. Here are some of the key questions to ask yourself. Concentration issues – Any of your customers account for […]
Qualities to Consider in a Business Advisor
Being an advisor representing a client’s interests regarding the sale of their business requires many different skills. All of us who call ourselves “advisors” have varying strengths and weaknesses when it comes to these required skills. For example, many advisors have strong sales skills but weak valuation skills. Within any given transaction a successful advisor […]
Increase Your Company’s Value Before Selling
Analyze your company across the following criteria. You may realize that there are some easily achievable changes that will increase your company’s value. Goodwill – Does your company contain “personal goodwill” or “entity goodwill”? Does the goodwill reside with only you making it more difficult or risky to transfer to a buyer? Does goodwill also […]
Helpful Financial Ratios for Business Sellers
As a business owner you should be preparing an exit plan that should include an analysis of the performance of your business. Every business owner wants to exit the sale of his company with as much proceeds as possible and that starts by maximizing the value. Maximizing business value is dependent on increasing profitability at […]
Identify Your Obstacles
To experience a successful closing be prepared to mitigate the buyers concerns by understanding that they are going to be naturally skeptical and perhaps even coming across as suspicious. They are trying to mitigate risk! Hopefully your advisor has done their job and identified some of the obstacles and assisted in developing a plan to […]
Differences Between Business Brokers and M&A Advisors
So, after careful consideration and planning you think the time is right to sell your business. A friend or associate has recommended a professional they know of and you are going to interview them for the job. Your goal is to get the best possible representation. While some business brokers do a great job servicing […]
