Posts Tagged ‘business valuation’
Recognizing Symptoms of Burnout and How a Business Broker Can Help
Burnout affects many business owners. Sometimes the best solution is to sell the business before it begins to suffer as a result. While potential buyers may find business burnout an unlikely reason to sell, it is considered a valid reason. Cashing out sooner rather than later will help you avoid devaluing your business and being…
Read MoreWhat Should You Expect When Your Business is Up for Sale?
Oftentimes, business owners feel unprepared for the length and complexity involved in selling a business. While you may have successfully sold a house or even a car before, it should come as no surprise that the experience of selling your business is far different. Let’s take a look at some of the things you should…
Read MoreThe Legal Side of Your Transaction
It should come as no surprise that legal issues can quickly pop up during the buying and selling process. If you’re planning to sell your business, it’s important to think through these matters ahead of time so you don’t accidentally fall into any common traps that can affect unprepared sellers. When you work with an…
Read MoreConfronting the Emotional Reality of Selling a Business
Selling your business is one of the most serious, and life changing, decisions that most people will ever make. Yet, as substantial of a decision as this may be, far too often business owners fail to consider the emotional side of selling their business. Not begin emotionally ready to sell, or being overly emotional when…
Read MoreBusiness Owners, What is Your Exit Strategy?
Oftentimes our clients are surprised to hear that we strongly advise them to start planning their exit strategy as early as possible. In fact, planning it out when you first start the business is a good idea. This may at first seem counterintuitive. However, there is tremendous value to having a plan in place. Our…
Read MoreBusiness Valuations: Some Difficult Issues
Business valuations are almost always difficult and often complex. A valuation is also frequently subject to the judgment of the person conducting it. In addition, the person conducting the valuation must assume that the information furnished to him or her is accurate. Here are some issues that must be considered when arriving at a value for…
Read MoreTwo Similar Companies – Big Difference in Value
Consider two different companies in virtually the same industry. Both companies have an EBITDA of $6 million – but, they have very different valuations. One is valued at five times EBITDA, pricing it at $30 million. The other is valued at seven times EBITDA, making it $42 million. What’s the difference? One can look at the usual checklist for…
Read MoreA Reasonable Price for Private Companies
What is a reasonable price for private companies? Putting a price on privately-held companies is more complicated than placing a value or price on a publicly-held one. For one thing, many privately-held businesses do not have audited financial statements; these statements are very expensive and not required. Public companies also have to reveal a lot more about their financial issues…
Read MoreWhat Is A Business Worth?
What is a business worth? Many courts and the Internal Revenue Service have defined fair market value as: “The amount at which property would exchange between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having a reasonable knowledge of relevant facts.” You may have to…
Read MoreChecklist for Valuation
One of the first things you need to accomplish when you decide to sell your business is a valuation. A valuation will inform you on how to properly price your business depending on multiple factor. Although it is recommended that you hire a business broker or a licensed individual to price your business, below…
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