– 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 […]
– 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 […]
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 […]
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 […]
Maximize Business Selling Price – Render unto Caesar… I recently had a client with a very successful business who wanted to sell his company. It was a distribution business with a track-record of earning an excellent gross margin, with a good deal left over after operating expenses. But it was time for him to exit the business, and enjoy the next stage of his life. We agreed on a selling price, and I started marketing […]
