Category

M&A Terms

30 Oct 2017

Average Selling Price / Days on the Market for Private M&A Deals
October 30, 2017• by • , , , •

– Statistics Regarding Selling a Business – If you’re a business owner considering selling his/her business, it’s helpful to know some basic statistics regarding averages for selling a business.   The following information was gleaned utilizing data from a Pratt’s Stats database, based on transactions of private companies by private buyers. The “Average Days on the Market by Asking Price” information compares how many days it typically takes a company to sell based on the […]

18 Jul 2017

Earn Outs
July 18, 2017• by • , , , , , •

– 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 […]

05 Jan 2017

Why Exclusive Engagement Agreements Are the Norm
January 5, 2017• by • , , , , •

– 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, […]

13 Sep 2016

Duties Performed by Business Brokers for Sellers
September 13, 2016• by • , , , , •

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 […]

07 Jul 2016

35 Steps in Selling a Business – An Outline
July 7, 2016• by • , , , , •

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 […]

04 Jul 2016

PLANNING: First 9 Steps In Selling a Business
July 4, 2016• by • , , , •

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 – Planning:   Seller Interview:  This is one of only […]

03 Jul 2016

SEARCHING: 8 Steps in 3rd Stage of Selling a Business
July 3, 2016• by • , , , •

  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 2nd stage – The Search:   Implement Buyer Search Plan:  Depending […]

02 Jul 2016

DEAL MAKING: 10 Steps in 3rd Stage of Selling a Business
July 2, 2016• by • , , , •

Whether you are trying to sell your business by yourself or 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 Broker is to allow the business owner/seller to continue to operate the business […]

01 Jul 2016

CLOSING: 8 Steps in 4th Stage of Selling a Business
July 1, 2016• by • , , , •

  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 4th stage – Closing: Accounting/Legal Assistance: The buyer and seller are […]

03 May 2016

Employment Agreements: When Buying or Selling a Business
May 3, 2016• by • , , , , •

Employment Agreements: What, Why, and When I read a very informative article on ExitPromise recently, which addressed these four important topics: “Why Does a Business Need an Employment Agreement”, “Types of Employment Agreements”, “What Must Be Included in an Employment Agreement”, and “Are There Drawbacks?”   “An employment agreement is a formal contract between an employer and an employee which defines the conditions of employment. This agreement usually will specify major employment details and include […]