Business Valuation, Buying & Selling a Company, Exit Planning

Know These Six Biggie Mistakes When Selling Your Business

I write a lot about the issues that can arise when selling a business.  You may get tired of reading about it … but the once in a lifetime sale of a privately held business is probably the most important transaction in a business owner’s life. So here is another post on the subject. Business owners often underestimate the effort needed for a good outcome in a transaction.  They also over estimate the value and salability of their companies. Consider these items: Overestimating the value of the company.  The listing price should be based on the fair market value of…

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Buying & Selling a Company, Exit Planning

Myths About Selling A Business

The business owner will only sell their business once.  It is the most important transaction of their lives. The process is complex with legal, tax, valuation and personal planning issues all co-mingled. If you are a business owner looking to sell a business soon, here are some of the ‘myths’ we often hear that, if believed, can result in a less than optimum outcome. First Myth: I know what my business is worth, better than anyone else. Some owners want to be reimbursed for “sweat equity”.  Others think their business is worth what they need in retirement.  Yet others use…

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Alternative Investments, Buying & Selling a Company, Exit Planning

SBA Loans Help Finance Small Business, #2

This is a continuation of the last post, which primarily focused on the SBA 7(a) program.  Here I’ll discuss other SBA lending programs. Because SBA loan guaranty requirements and practices can be change by the government at any time, it is important for applicants to obtain current and accurate information. This article is merely intended to help a business owner ( potential borrower) start thinking about these programs.  You must do your own investigation and research. The information here is not to considered legal or financial advice.  Just a prompt to start thinking about the topic. CDC/504 Loan Program The…

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Alternative Investments, Buying & Selling a Company, Exit Planning

SBA Loans Help Finance Small Business, #1

In challenging times, small businesses can look for liquidity and financing in many places.  The various SBA loan programs are one of the better places to search. Because SBA loan guaranty requirements and practices can be change by the government at any time, it is important for applicants to obtain current and accurate information. This article is merely intended to help a business owner ( potential borrower) start thinking about these programs.  You must do your own investigation and research. The information here is not to considered legal or financial advice.  Just a prompt to start thinking about the topic.…

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Buying & Selling a Company, Exit Planning

Beware the Avalanche

Small Business Owners have often seen it all.  If your company is older than ten years, add in the business cycle to the long list of things that compromise “all”. But here may be something unique that these owners have not seen yet, at least at the level of magnitude that seems to be on the horizon. Consider this in you are thinking of moving on from your business.  There may be an avalanche of business owners attempting to leave or exit their business in the coming years. 8,000 people turn 65 every day.  This has been going on since…

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Buying & Selling a Company, Exit Planning

What Makes a Company Sell Quickly? Or at all?

The rule of thumb in the business brokerage world is that only 20% of companies sell each year.  This means that 80% do not.  Is your business in the top 20% or bottom 80%? If you are interested in selling in the middle of an economic crisis, the chances of selling your company are even lower. There are certain things a business owner can do to make their company sell faster.  Or even sell at all.  To start, the seller should know what buyers often look for. What are some of the things buyers look for? Good quality sales and…

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Buying & Selling a Company

Which Business Broker or Investment Banker to Sell Your Business?

You only get one chance to sell your business.  That’s ONE chance to cash in on your most important asset.  One chance to be rewarded for your life’s work. According to the New York Times, 80% to 90% of businesses listed for sale with a business intermediary never sell.   No doubt there are many factors that contribute to this that are outside of your control – the economy, the market, and the industry to name a few.  The one thing that you can control – hiring the right advisor that will act in YOUR best interest. If you see any…

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