Happy Valentines Day 2020
It’s Valentine’s Day—a great reason for letting you know how much we appreciate you. Enjoy the day!
General
Tip #15 Timing is Everything!
Many business owners seem unable to let go of their company and wait too long. Some lose their entrepreneurial drive and the business starts sliding. Or the market starts to change and the company loses value. To get the maximum price, owners need to do some serious planning to prepare… Read More »Tip #15 Timing is Everything!
Earnouts: Breaking the M&A Deadlock
Earnouts are used to bridge a valuation gap between a buyer and a seller. It’s a compromise, of sorts, to break a purchase-price deadlock when the seller wants more than the buyer is willing (or able) to pay. In an earnout, a portion of the purchase price is paid out… Read More »Earnouts: Breaking the M&A Deadlock
Thinking of Selling Your Business this Year?
It is time to get started! Findings from Q3, 2019 Market Pulse Survey found that for Businesses that sold for less than $500,000, took an average of 6 months to while those that sold for more than $5M, took almost twice as long. It is important to note that having… Read More »Thinking of Selling Your Business this Year?
Asking Price vs Actual Purchase Price
In Q3, final sale prices came in anywhere from 85% to 109% of the pre-set asking price or internal benchmark. Lower Middle Market companies in the $5M-$50M range achieved the highest values at 109% of benchmark. Businesses with values of $5 million or more typically do not have a published… Read More »Asking Price vs Actual Purchase Price
Tip #14 Special Relationships with Customers and/or Vendors Tip
Special relationships that business owners have developed with customers and/or vendors can be a real issue when selling the business. A new owner may have a problem continuing that relationship and this could jeopardize the sale of the business. It is recommended that business owners begin delegating any special relationships… Read More »Tip #14 Special Relationships with Customers and/or Vendors Tip
Exclusivity Clause Protects Buyer Investment in M&A
An exclusivity clause is an important part of M&A transactions. Also known as a ‘no shop’ provision, it prohibits the seller from sharing information or negotiating with other would-be buyers for a specified timeframe. Prior to this, the seller is negotiating with several buyers. The goal is to entertain multiple… Read More »Exclusivity Clause Protects Buyer Investment in M&A
Is it a Buyer’s or Seller’s Market for Selling a Business?
It Depends. Findings from Q3, 2019 Market Pulse Survey found that for Businesses that sold for less than $500,000, it was a Buyer’s Market. For those that sold for more than $500,000, it was a Seller’s Market. However, looking at quarterly trends from the past 5 years, one sees that… Read More »Is it a Buyer’s or Seller’s Market for Selling a Business?
Super Bowl 2020
May your favorite team win. We are hoping for a truly enjoyable game. We are heading over to friends to enjoy the game, we all know who Lisa will be cheering for. We wish you all a great end to the weekend. Contact us if you are interested in selling… Read More »Super Bowl 2020
When It’s Time to Sell Your Business, How Close is Your Buyer?
Findings from Q3, 2019 Market Pulse Survey and fairly consistent for the past several years, finds that almost ¾ (73.8%) of buyers who bought businesses for less than $500,000 lived within 20 miles of the purchased business. For those who bought businesses for more than $5M, three quarters (75%) lived… Read More »When It’s Time to Sell Your Business, How Close is Your Buyer?