Resources

Earnouts Don’t Deserve A Bad Reputation

Posted on September 29th, 2019

Even if you stay on with the business, you don’t have complete control over how new ownership runs the company. If the business does well, you get paid. If business drops, you don’t.

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No Haircuts

Posted on September 14th, 2019

Imagine a buyer has offered you a six-multiple on EBITDA in their initial letter of intent. Unfortunately, you don’t have clean financials that have been tested and scrutinized by an outside party. Once the buyer vets your financials, they uncover some adjustments they don’t agree with and revenue that was accounted in the wrong period.

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How to Build Your Company’s Value

Posted on August 6th, 2019

As you build your company’s strategic plan, consider not only how to drive growth, but also how to reap long-term financial rewards. Most of your personal wealth is likely tied to your business. This means that maximizing your business’s value ensures an optimal return on your investment, helping you meet your financial goals.

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Business Owners are Operating without a Report Card

Posted on July 27th, 2019

Imagine your kids going to school, kindergarten through high school, without ever receiving a report card. As a parent, how would you know when they needed additional help? If they were ready for a new challenge? Whether you should help them prep for college or consider alternative training?

At the end of the day, it would be hard to make well-informed decisions. Your kids would go to school and put in the time every day, and you’d have no idea if they were doing D or A-level work.

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How three offers came in with a $10 million swing

Posted on July 14th, 2019

Lower-to-mid-size businesses typically go to market without a preset asking price. You will set an internal benchmark with your M&A advisors, but we won’t publish or discuss your value expectations with potential buyers.

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Adding Value Beyond Revenues

Posted on May 12th, 2019

There’s a difference between generating cash and building business value that someone will be willing to pay for. Here are a few ways to boost your future purchase price and increase your business valuation:

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When You Can’t Fix Concentration Issues

Posted on May 7th, 2019

As you build your business, pay attention to what a future buyer will want. They’re looking for well-diversified customer groups where the loss of one account won’t have a devastating impact. Do the hard work of diversifying, and you’ll increase your future business value.

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The case of the $5 million valuation discrepancy

Posted on April 14th, 2019

Recently, we did an estimate of value (EOV) for a company, calculating that it would sell for around $8 million or $9 million in the current market. It’s a nice business and I think that number is achievable. We might even get a bit more with a strategic buyer.

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DealCoach Helping You Estimate the Value of Your Business

Posted on February 27th, 2019

DealCoach's Estimate of Value (EOV) provides owners with a realistic understanding of what the market would most likely bear for their company in today’s marketplace.

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How Long Will It Take to Sell Your Business?

Posted on February 24th, 2019

If you’re one of the several million baby boomers thinking about selling their company in the near future, you might be wondering how long the whole process will take and what to expect along the way. 

If you have a focused advisor who is working the deal, expect two months of initial prep, 30 to 120 days for marketing, one month for negotiations, and roughly 60-90 days to handle due diligence, financing, and legal. Here’s the process in more detail:

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