Resources

The Importance of Family Time in the Value of Your Business

Posted on June 14th, 2017

With the summer months coming up, DealCoach & Cornerstone Business Services’ Scott Bushkie wrote a timely article for the Green Bay Press-Gazette highlighting the importance of time away and how that enhances the value of your business. Whether it’s a family trip to a cabin or a long weekend for a child’s soccer tournament – that time away gives your management team a chance build trust and help you move the business forward.

There will be a learning curve, no doubt. But take those bumps in the road to learn and coach your team, and in the long run – when you’re transitioning out and are ready to exit – there will be more interest in your business.

You can read the article here.

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Wonderful Company at a Fair Price

Posted on June 6th, 2017

Warren Buffet once said, “It’s far better to buy a wonderful company at a fair price, than a fair company at a wonderful price.” I certainly think he’s right.

Working with our buy-side division, of course we understand that everyone wants to get a great deal. They want to find that perfect company and get it at a four-multiple when the market is running closer to six. We’ve seen clients walk away from perfect deals that hit all of their requirements, only because they wanted to buy below market.

By. Scott Bushkie

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Address Culture Conflict Before a Sale

Posted on May 30th, 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.

By Scott Bushkie – CBI, M&A Advisor

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Not All Contracts are Created Equal

Posted on May 3rd, 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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Hire a Specialist

Posted on April 17th, 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.

By Scott Bushkie – CBI, M&A Advisor

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Market and competition impact sale price

Posted on April 3rd, 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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Reduce working capital to maximize value

Posted on March 16th, 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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Consider Seller’s Role in Business, Transition

Posted on January 24th, 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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Pro-business climate should spur M&A

Posted on January 10th, 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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What Buyers Want Under the Tree this Season

Posted on December 28th, 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.

By Scott Bushkie – CBI, M&A Advisor

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