Supply chain issues are a big concern for businesses right now. Forced shutdowns, crisis forecasting, labor issues, and logistics all played (or are still playing) a part in the current shortages. Business has not snapped back to normal.
Most buyers focus on the TTM (trailing twelve months) to evaluate what they will pay for your business, not what your EBITDA was five years ago in your peak, before you got tired, before you lost your mojo.
A stay bonus provides an incentive for an employee to stay with the company during and after a sale. They’re designed to protect the company in times of change.
When you’re selling a business, put issues on the table right away. Whether you have ineligible employees on your payroll, you just lost a client, or litigation is pending—be up front.
Delays are one of the biggest problems contributing to deal failure. The longer the process drags on, the more likely it is that a) someone gets fed up and moves on or b) something big will happen, economically or geopolitically, that disrupts the deal.
A business valuation is a crucial tool for any business owner or manager, as it can provide valuable insights and information that can help inform important business decisions. There are several reasons why it is essential to know the value of your business and how often you should get a business valuation.
You’ve decided to sell. Now how can you get the most for your business? You need to “clean up your act,” so to speak, and address some operational issues that may not have been a priority for you over the years.
When you’re ready to retire, or exit your business, you may think selling to a competitor is your only option. But competitors are seldom your best buyer. They’re rarely willing to pay top value because they’re already established in the market.
There are several myths about selling a company that can be misleading or simply not true. Here are a few common myths about selling a company:
Labor issues are affecting the M&A market. For some business owners, it means decreased value because they can’t find people to maintain operations or replace the owner after a sale. But labor shortages are also sending buyers to market. When they can’t hire the talent they need to grow organically, they look to expand through acquisition instead – buying companies with fully staffed teams.