Posted on May 27th, 2017
As an owner, one way to maximize value in your business is to demonstrate that you’re not the smartest person in the room. In an ideal state, you work yourself out of a job, moving on to an advisory role while your management team runs day-to-day operations.
With that said, it’s equally important that your goals and values are in sync with your managers’. When selling a business, you want to show buyers a positive work culture in which team members work well together and make each other better.
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Posted on May 2nd, 2017
What’s the value of a customer when it’s time to sell your business? The short answer: It depends.
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Posted on April 22nd, 2017
During mergers and acquisitions, apparently inconsequential technological issues can materially impact the ultimate value of the business. So how can you improve the value of your business by driving up the value of its technology? These five simple tips help you navigate the process, but they don’t address more complex issues, like technical debt, undiscovered software defects, or privacy and security risks. Those issues require a separate evaluation and strategy.
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Posted on April 15th, 2017
I don’t just tell people to use a specialist and then go home and try to do things on my own. I just sold my house, and because of the licensing I need to sell a business, I had the proper credentials to sell it myself. I already have all the forms and a good relationship with an attorney who would advise me.
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Posted on April 2nd, 2017
These are all factors a business owner can typically control within a relatively short time frame, in as little as two to three years. That said, other key business elements such as industry and competition also impact the sale price, but business owners will need a much longer-term strategy in order to effect change in these areas.
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Posted on March 15th, 2017
Working capital is a measurement of operating liquidity, most of the time it is calculated as AR, inventory and prepaids minus AP and accruals. Lines of credit are most often excluded as well as cash, long term debt and notes payable. Because working capital is required to run a business, buyers typically require a certain amount of net working capital be left in the business to meet standard operating needs.
Working capital is not typically used in calculating the initial offer price, although it is certainly a critical point of negotiation. But basically, the higher your net working capital, the less money you put in your pocket after a sale.
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Posted on January 23rd, 2017
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.
As you think about negotiating for the seller’s time after a sale, think about their role in the business. Do they have a strong, empowered management team? Or did the seller operate the business from a place of tight, centralized control?
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Posted on January 9th, 2017
It’s about that time when I like to make some forecasts for the year ahead. I am happy to report that last year’s predictions were pretty much on target and the M&A marketplace continued to run strong throughout the year.
One thing I did not predict, however, was a Donald Trump presidency. We generally expect elections to create uncertainty, but the markets have responded in a positive manner. I believe the M&A marketplace will follow in kind with a productive and active year ahead.
Here’s what else I see coming.
By Scott Bushkie – CBI, M&A Advisor
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Posted on December 27th, 2016
Here’s hoping all your holiday gifts were well chosen and gratefully received. If you’re anything like me, you bought all your presents on Christmas Eve morning. There’s something about that final shopping day that puts me in the spirit.
Of course, that kind of last minute shopping might work for gifts, but not when it comes to buying a business. As you think about business growth, sit down with your team and figure out if acquisition could be the right strategy.
Here’s why several of our active buyers are searching the market right now.
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Posted on December 10th, 2016
No one likes to think about all the what-if scenarios in life. Most business owners have no plan for exiting their business at all, much less exiting in the face of conflict or tragedy. As you finalize your business goals for next year, make time to protect your business against the five dismal D’s.
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