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Plan ahead when selling your business

2020-03-06T19:19:21+00:00December 7th, 2019|

Owners are often asked, “do you think you will ever sell your business?” The answer varies from, “when I can get my price” to “never” to “I don’t really know” to everything in between. Most sellers may think to themselves when asked this question, “I’ll sell when the time is right.” Obviously, misfortune can [...]

Sell Your Business and Retire – What You Need to Know.

2020-03-06T19:19:12+00:00November 23rd, 2019|

Read a great article in the December 2013 issue of Entrepreneur Magazine (“Ask the Money Guy” column) that discusses the issues surrounding the prospect of selling a small business to fund retirement. The gist of the article is that to get the most from a sale of your business, in a crowded field of business sellers [...]

What Would Your Business Sell For?

2020-03-06T19:19:05+00:00November 9th, 2019|

A commonly accepted method to price a small business is to use Seller’s Discretionary Earnings (SDE) and applying a multiplier.  Essentially, SDE is an estimate of the cash flow the business produces for one working owner.  The multiplier is developed from the characteristics of the business and/or sales of similar businesses. The International Business [...]

Burnout: An Ever-Present Threat

2020-03-06T19:18:58+00:00October 26th, 2019|

Burnout is an often-used reason for an owner selling his or her business. Potential buyers may have trouble accepting this as a valid reason for sale. However, burnout is a valid reason for selling one’s business. A business owner can experience burnout even with a business that’s successful and growing. Many independent business owners [...]

Time to Create an Exit Strategy?

2020-03-06T19:18:52+00:00October 12th, 2019|

There is the old adage that says: “The time to develop an exit strategy is the day you open for business.”   Sounds good, but not very realistic or very optimistic. On the day you open for business, your thoughts are focused on making the business successful, not how to get out of it.   However, [...]

What’s Unique About a Particular Business?

2020-03-06T19:18:45+00:00September 28th, 2019|

Most business owners think that their business is unique, but what are the factors and attributes that really make a business stand out from others.  There are key factors that make a business both unique and, at the same time, make it more valuable in the marketplace and more desirable to prospective purchasers. Here [...]

You want how much for your business ???

2020-03-06T19:18:36+00:00September 14th, 2019|

This question is often a potential buyer’s first response when given the price of a business – often accompanied with an expression of astonishment. Especially when a very profitable business has few tangible assets.  The difference between the actual physical assets and the asking price is often called “blue sky.”  Goodwill has often been [...]

Does a business “fit” you?

2020-03-06T19:18:26+00:00August 17th, 2019|

When you are thinking about buying some business and are looking at a specific business, the real challenge is to determine if it’s the right “fit” for you.  It is helpful to ask the following questions: Does the business look exciting and interesting to me? Do I feel that I can improve the business? Would the business offer [...]

Questions in pricing a business for sale

2020-03-06T19:18:11+00:00July 20th, 2019|

Here are some questions to ask yourself when pricing a business and determining exactly what is for sale: What's for sale and what's not for sale?  Does it include real estate?  Is some equipment leased rather than owned?  Is intellectual property licensed or owned? Where is the competitive advantage? Does the business have a [...]

Only one out of fifteen – are you the One?

2020-03-04T15:17:07+00:00August 31st, 2009|

Only about one out of fifteen potential business buyers will ultimately make a purchase?  If you are considering purchasing a business, it may be helpful for you to understand the challenges buyers need to overcome in order to buy a business. There are a number of challenges to overcome when buying a business, especially for [...]