– A Portion of the Purchase Price for a Business, Paid in the Future, Based Upon Milestones Achieved – I recently read a very informative article, written by Doug Robbins, president of Robbinex, Inc., about Earn-outs. Doug, whose company specializes in the sale of mid-sized privately held businesses, addressed these four important topics related to Earn-outs: (i) What is a milestone [when used to determine an Earn-out]?, (ii) What part of the purchase price [is […]
– Do You Have the Skills, Knowledge…and the Time? – Some business owners, when they’re ready to exit their business, try to sell their company themselves. After all, who knows their company better than they do, and could talk about it endlessly? And, how tough can it be to sell a business? They’ve successfully run their business for many years, and what can be tougher than that – plus, they can save the fee of […]
– Do You Want to Get the Best Deal or Just Save the Fee? – The ability to have multiple buyers compete for the acquisition of a business is in every business owner’s best interest. If you receive an unsolicited offer for your business, you may save a fee, but you have no idea if the offer is a good deal for you. A competitive bidding process (*) is the only way to ensure that […]
– Types of Listing Agreements for Business Brokers – Selling your business is a big decision and the process can be overwhelming to those who are unfamiliar with the market. Your first step, after deciding to sell your business, is to hire a business broker to assist you throughout the selling process. Do a simple google search and you will discover that there are many brokers out there and they offer various types of agreements, […]
Knowing Business Value is a Very Good Place to Start In today’s economy, no one wants to spend money on something they don’t need today. So why do you need an estimate of your company’s value when you don’t expect to leave for several or many years? You may not — if you fall into one of two groups: Owners who are sure that their business exits are more than 10 years away. Owners […]
What Business Brokers Do for Sellers Some of the duties that professional business brokers perform to facilitate a business transition transaction include: Price the business with a professional valuation. Draft an offering summary, sometimes called a Confidential Business Review. This piece becomes one of the most important marketing tools for the offering, and is provided to prospects only after they have signed a confidentiality agreement and been qualified by the broker. Market the business to […]
Selling a Business in 35 Steps Whether you are trying to sell your business by yourself, or you hire a professional to guide you through the process, there are 35 separate steps required to sell a business. I’ve broken down these 35 steps into four major stages: Planning, Searching, Deal Making, and Closing. To see a brief description of each step in these four stages, click: Planning – the first 9 Steps Searching […]
Planning: The First 9 Steps In Selling a Business Whether you are trying to sell your business by yourself, or you hire a professional to guide you through the process, there are four major stages of selling a business: Planning, Searching, Deal Making, and Closing. I will provide some explanation for each of the detailed steps in these four stages in a series of four discussions. Here are the steps in the 1st stage […]
Searching: 8 Steps in the 2nd Stage of Selling a Business Whether you are trying to sell your business by yourself, or you hire a professional to guide you through the process, there are four major stages of selling a business: Planning, Searching, Deal Making, and Closing. I will provide some explanation for each of the detailed steps in these four stages in a series of four discussions. Here are the steps in the […]
Deal Making: 10 Steps in the 3rd Stage of Selling a Business Whether you are trying to sell your business by yourself, or you hire a professional to guide you through the process, there are four major stages of selling a business: Planning, Searching, Deal Making, and Closing. Here are the ten steps in the 3rd stage – Deal Making: Answer Buyer Questions: One of the major reasons for hiring an M&A Advisor or Business […]
