Articles

Seller Financing Benefits Both Sides of Transaction

Posted on May 2nd, 2016

If you’re considering selling your business, don’t expect to walk away with all cash at close. This isn’t like selling a house. Most deals involve some sort of alternative financing. You may be asked to accept an earn out, roll over a portion of equity, or (most commonly) provide seller financing.

Even when the M&A market is strong and lenders are aggressively financing business acquisitions, seller financing is often still part of the deal structure. And when there’s a downturn or lenders tighten up, then seller financing is even more prevalent and important.

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How to Work With Sellers After You Buy Their Company

Posted on February 16th, 2016

When buying a company, one key factor in your success is the transition that happens immediately afterwards. You need time with the previous owner to understand how and why they operated the business the way they did. And you need their support to transition customer relationships. 

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Selling A Small Business That Isn’t So Small: An Interview With Scott Bushkie

Posted on February 6th, 2016

If your business has $10 million in annual revenue, who do you turn to help sell your business? After all, you are still technically a small business but are worth more than many small business broker’s are used to handling. One place to turn is Cornerstone Business Services. The company specializes in selling companies with $2 million to $100 million in revenue or $500K to $10 million + in EBITDA. In 2015, the company was involved in 12 completed transactions.

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Market Pulse Quarterly Report Shows 2015 Ended with Strong Sales of Businesses and Optimism is Growing for 2016

Posted on February 5th, 2016

The Small Business Administration had a record year, distributing more than $23.6 billion in loans in FY 2015. There was also significant private capital and traditional lending for the Main Street market in 2015 as 71% of Market Pulse study respondents who closed deals under $2MM in value reported that the businesses utilized financing other than SBA funds. The SBA record year, coupled with the traditional lending, demonstrates how incredibly active the Main Street market was in 2015

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Plan for a Transition Period

Posted on January 24th, 2016

When a business owner says it’s time to sell, one of the first questions I ask is, “What’s your timeframe? When do you want to be out?” And the answer I hear most often is, “Yesterday.”

That is a problem. Most business owners underestimate the time it takes to sell and exit their business. It’s not like selling a house, and you don’t get to hand over the keys and walk away on closing day.

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Buy a Business or Start Your Own?

Posted on December 6th, 2015

Over 17 years of selling businesses, I’ve talked with many individuals who dream of being their own boss. Some of them have fuzzy plans and little initiative. With others, you can tell it’s only a matter of “when,” not “if.”

But even many committed future business owners are still not sure if buying makes the most sense rather than starting a business on their own. Of course, I’m biased and I think they should buy. But there are times when a startup is the better choice. Here are some pros and cons of both:

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Set new goals to avoid seller’s remorse

Posted on September 9th, 2015

Many of my clients have told me that selling a business is like giving a child up for adoption or sending their teenager to an out-of-state college. They know it’s the right thing to do, but they miss the daily involvement, the challenge, and the companionship.

It’s the same thing with a business. At some point, it makes sense for you and the business to part ways. Maybe the company has outgrown you and needs new leadership to thrive. Or maybe your passion has started to wane, and you’re feeling like work has become a grind.

Either way, you have two options.

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Sell a Business | Trim Working Capital

Posted on May 18th, 2014

Over the years, I’ve surprised any number of clients, looking to sell a business, by telling them that working capital most likely would be included in the price of their company. Many of them believed that they …

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Sell a Business | Marketing Matters in Sale of Business

Posted on May 17th, 2014

Most business owners understand what good quality marketing materials can do for their business. They hire high-priced talent and spend whatever they need to maximize sales. But when it comes time to sell their business—not a product

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Harvest Time – Is it time to Sell My Small Business?

Posted on May 12th, 2014

As I drove down to Dubuque, Iowa for a meeting last week, I couldn’t help but notice all the farmers harvesting their crops. It made me think about the sellers I’m working with right now and the current status of the M&A market.

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