It’s the New Year, that time when many business owners make a fresh resolve to develop their business. For some, that means updating equipment and driving sales. But others will focus on something more personal and possibly more pivotal: developing their leaders.
“Immense satisfaction tinged with loss.” That’s how one business owner described selling his business.
A no shop provision is an important part of M&A transactions. Also known as an exclusivity clause, a no shop clause prohibits the seller from sharing information or negotiating with other would-be buyers for a specified timeframe.
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.
Often, clients sort of just find themselves in the M&A process and have trouble making sense of the overwhelming landscape of buying and selling a business. Today, we are going to attempt to clear up a set of commonly used acronyms you’ll see when valuing a business for sale. Those are EBITDA and SDE and Multiples.
Why get a Business Valuation? If you are a business owner, one of the best things you can do for yourself is to understand the value of your business. A valuation helps shape your exit strategy, informs your financial planning, and can be critical to creating a contingency plan that adequately protects your family.
Business owners thinking about exiting their business may be hearing the terms “platform” and “add-on” acquisitions. Understanding these terms, and knowing which category you might belong to, can help you prepare your business for a competitive, higher value sale.
Your business is on the market and you’re looking forward to that glorious day when you can let go of the pressure and responsibilities of ownership. But don’t let those future plans distract you from what’s going on today.
As you look at your options for business valuations, I want to share where we fit in and why we think DealCoach is best. There are cheaper services out there, but like anything, you get what you pay for. Many of the low cost valuation services you find online are computer-generated models only.
If you’re a business owner, you know that at some point you will have to transition out of your business. The question is, will the business transition to new ownership or will you have to shut your doors?