– 8 Tips to Improve the Marketability of Your Company – There is a well-known business adage that says “every company is for sale at the right price.” Whether you’re actively selling your business or just mildly interested, preparing your business for sale will help improve current efficiency and bottom-line profit by exposing ineffective processes and operational deficits. To enhance the value of your business, it’s important to work every day to upgrade its […]
– Mistakes Business Owners Should Avoid – Two businesses can look identical, but have very different valuations. We look at 400 different qualitative aspects of the business, and provide a prioritized list of issues to make a better business. Here’s our own top 11 list of the most common mistakes business owners make: 1. They don’t have a business plan. Or, if they do, they waste time doing one, and then sticking it in […]
Your Business Valuation is Effected by Your Balance Sheet A balance sheet is one of the most common starting places for buyers when attempting to assess the value of your company. The following items that flow through your balance sheet may impact the value of your business more than you think. Business owners should consider the following aspects of their balance sheet when deciding to sell: Capital Expenditures Most businesses would expect to see […]
What Owners Want to Know About Selling Their Company 1. How much is my business worth? I’m uncomfortable with Mr. Schmerler’s answer: “…the price a Buyer offers you that you are willing to accept.” I feel a more complete explanation is: “A business is worth whatever the buyer, seller, and banker agree its worth. However, without significant extenuating circumstances, the maximum value is based upon the probability the business will produce a steady stream […]
Value Drivers Do you ever wonder why one business has buyers lined up willing to pay top dollar while another sits on the market for months, or even years? What do buyers look for in a prospective business acquisition? …The items, common to all industries, which drive up value, are called “Value Drivers.” They include: • A stable, motivated management team • Operating systems that improve sustainability of cash flows • A solid, diversified customer […]
One Buyer is Almost Like Having No Buyers I recently had a situation that a lot of business brokers experience. A business owner contacted me about his interest in selling his company, so we spent some time talking about how he got into the business, why he wanted to sell the business now, what he planned to do after he sold the business, etc. I wanted to hear his responses to some of the […]
Make Your Business More Valuable During Your Next Family Vacation It may seem strange, but one of the best times to increase the value of your company is while you’re on vacation. And your family will be pleased you did! The most valuable businesses are the ones that can survive without their owner. A buyer will pay a premium for a company that runs on autopilot and levy a steep discount for a […]
Business Lessons from International Sports Let’s reflect back on some of the big events of the 2010 Olympic Games in Vancouver. In the Men’s Downhill race at Whistler, for example, the winning time of 1:54:31 was posted by Didier Défago of Switzerland. The time separating the three medalists was the closest in Olympic history. And, while Mario Scheiber of Austria posted a time of 1:54:52 – just two tenths of a second slower […]
