Blog
Know The Price Before Selling Your Business
The article How To Sell Your Small Business by Kayleigh Kulp contains terrific advise. Before deciding to put your business on the market, make sure you understand the price (and terms) your business will command. This article cites multiples of cash flow that are a...
Tax-Related Issues When Selling A Business or Making An Exit Plan
I read a great article today on tax issues that arise when selling your business. I found the article on Yahoo Finance. Tax Implications of Selling a Small Business by Mark Henricks points out different ways to structure your deal. The author explains 4 major parts to look at when selling your business or structuring your exit plan.
How Business Sales Are Taxed
Asset Allocation
Deal Structure
Corporate Stock Sales
Consult Your Advisory Team Before Selling Your Business
Selling a privately held business is a significant liquidity event for most. A CPA, financial planner, and/or an attorney can be invaluable in helping you position yourself to maximize your personal benefit from a buy sell transaction. The real value of a...
How Long Will It Take To Sell My Business?
NOTE: The following insight is for small businesses, those with less than $10 Million in annual revenues. It takes quite a bit of planning and work to sell a business. If you own a healthy small business, you have done the proper planning to prepare for the sale, the...
Affordability Drives What Your Business Will Sell For
It is a simple concept, but it is often forgotten. A buyer will only pay what they can afford. When selling/buying a small business, affordability is generally determined based on the operational cash flow generated by the business. Out of this cash flow, a new...
Multiples – BAD. Thoughtful Analysis – GREAT.
Are you asking yourself, “What will my business sell for?” I often talk to business owners who estimate the “value” of their business based on a multiple or a rule of thumb (ie. 3x Adjusted EBITA or 1.8x Revenue). This is dangerous when planning for the sale of your...
Market Conditions for Small Businesses Being Sold
The following are highlights from a recently published quarterly MarketPulse from the The International Business Broker Association for Main Street businesses (up to $2 million in market value) and Lower Middle Market transactions ($2-50 million in market value)....
Selling Your Business Requires Preparation
Understanding what makes your business attractive to buyers is the first step in preparing for an eventual sale. Below is a list of items that are generally found to be the most important: - Recurring Revenue/Strong Cash Flow - Consistent Growth - Transparent...
It’s A Great Time To Buy A Business!
Today's improving economic conditions have produced an environment that is conducive to buying a small business. Whether your're inclined to buy a challenged business and fix it, or buy a strong business and grow it, a lot of things are working in your favor. First of...
Owned Real Estate and Selling Your Business
Business owners wishing to sell their business often own the real estate occupied by the business. It is important to drive value where it belongs. In general, the real estate is valued based on the income it produces. If the rent paid by the business is below market,...
What Is Your Business Worth?
If you are considering selling your business, you should be asking a different question - "What should my asking price be?" Determining an initial asking price is not an exact science. The asking price is simply a starting point but it has to be compelling enough to...