Unlike that poetic title of an old-time standard song, Red Sails in the Sunset, red flags are not a pretty sight. They can cause a deal to crater. Sellers have to learn to recognize situations indicating there might be a problem in their attempt to sell their business. Very, very seldom does a white knight…
Read MoreMany business owners are unfamiliar with the dynamics of selling a company, because they have never done so. There are numerous possible “deal breakers.” Being aware of the following pitfalls and their remedies should help prevent the possibility of an aborted transaction and save the deal. Neglecting the Running of Your Business A major reason…
Read MoreTwo businesses for sale could report the same numeric value for “earnings” and yet be far from equal. Three factors of earnings are listed below that tell more about the earnings than just the number. 1. Quality of earnings Quality of earnings measures whether the earnings are padded with a lot of “add backs” or one-time…
Read MoreThe following are common mistakes sellers make: • They neglect to run their business during the sales process. – The owner of a business with sales under the $20 million range can get so involved in the selling process that they neglect the day-to-day operation of the business. • They don’t understand the “real” value of their business. –…
Read MoreSo you’ve finally decided it’s time to sell your business. It’s natural to have many questions pertaining to the process of selling – but are you asking the right questions? Here are a few points to ponder for sellers: Who best understands my business? When interviewing intermediaries to represent the sale of your firm, it…
Read MoreDoes your business have an orphan product or service that is doing okay, but doesn’t seem to fit into your core business? Many companies, private equity groups and even some individual buyers are seeking product lines to augment existing ones, or even to build a business around. Here are just a few of the reasons…
Read MoreThe initial response to the question in the title really should be: “Why do you want to know the value of your business?” This response is not intended to be flippant, but is a question that really needs to be answered. Does an owner need to know for estate purposes? Does the bank want to…
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