The 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…

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Confronting 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…

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Business 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…

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Business 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…

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Two 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…

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A 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…

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What 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…

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Checklist 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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What is the Value of Your Business? It All Depends.

The 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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