Why Your Company Needs a Physical
Many executives of both public and private firms get a physical check-up once a year. Many of these same executives think nothing of having their investments checked over at least once a year – probably more often. Yet, these same prudent executives never consider giving their company an annual physical, unless they are required to by company rules, ESOP regulations or some other necessary...Read More
Should You Be Selling Your Company…Now?
The answer to the question asked in the title is, “It all depends!” There are all sorts of studies, surveys and the like suggesting that as more and more “baby-boomers” reach retirement age, the market will be flooded with companies for sale. The consensus is that with these privately-held company owners reaching and nearing retirement age, the time to sell is now. In one survey, 57 percent of...Read More
How Does Your Business Compare?
The value of a business is not strictly about its financial performance or the price someone is willing to pay for it. Numerous intangible factors, or value drivers, influence its worth. The evaluation of these drivers provides insight into the business’s potential for future growth and profitability, which are key considerations for potential buyers. This article aims to...Read MoreHow Does Your Business Compare?
The art of selling a business extends beyond just financial figures; it incorporates various value drivers, key attributes or factors that can increase a business’s value and appeal to prospective buyers. Understanding these drivers, evaluating how your business measures up, and actively working to enhance your performance in these areas can significantly influence your business’s...Read More
The Confidentiality Agreement
When considering selling their companies, many owners become paranoid regarding the issue of confidentiality. They don’t want anyone to know the company is for sale, but at the same time, they want the highest price possible in the shortest period of time. This means, of course, that the company must be presented to quite a few prospects to accomplish this. A business cannot be sold in a...Read More
Common Reasons for Selling
It has been said that the sale of a business is usually event driven. Very few owners of businesses, whether small or large, wake up one morning and think, “Today I am going to sell my company.” It is usually a decision made after considerable thought and usually also prompted by some event. Here are a few common “events” that may prompt the decision to sell: Boredom or “Burn-out” – Many...Read More
Deciphering Business Valuations: Navigating the Challenges
Valuing a business is an intricate process steeped in complexity. Often subject to the judgment of the assessor, it assumes that the provided information is accurate, posing unique challenges. This article explores the key challenges inherent in business valuations and offers insights into handling these hurdles effectively. 1. Navigating the Dilemma of Product Diversity Firms offering a...Read More
Considering Selling? Some Important Questions
Some years ago, when Ted Kennedy was running for president of the United States, a commentator asked him why he wanted to be president. Senator Kennedy stumbled through his answer, almost ending his presidential run. Business owners, when asked questions by potential buyers, need to be prepared to provide forthright answers without stumbling. Here are three questions that potential buyers will...Read More
Is Your “Normalized” P&L Statement Normal?
Normalized Financial Statements – Statements that have been adjusted for items not representative of the current status of the business. Normalizing statements could include such adjustments as a non-recurring event, such as attorney fees expended in litigation. Another non-recurring event might be a plant closing or adjustments of abnormal depreciation. Sometimes, owner’s compensation and...Read More
