– 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 […]
– 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 […]
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 […]
A Business Appraisal or Valuation Opinion The first step a business owner needs to consider when planning the sale of his or her company is to determine the market value. A business valuation provides an excellent indicator of your company’s market value, and it offers guidance for pricing the business for a successful sale in a reasonable period of time. A proper valuation also reduces the likelihood of receiving offers significantly lower than the […]
