Blog Tag

sale of a business

14 Jun 2017

How Inventory Impacts Business Valuation
June 14, 2017• by • , , •

– An Explanation of Excess Inventory – Many business owners who are interested in selling their company often ask how the amount of their inventory impacts the value of their business.   Must business valuations for companies under $50M use market multiples of earnings [i.e. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) or ODCF (Owners Discretionary Cash Flow)] to determine value. Both these valuation methods assume a “normal inventory” level is provided at closing. […]

02 Oct 2016

How Your Balance Sheet Impacts Business Value
October 2, 2016• by • , , , , •

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 […]

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 […]

29 Oct 2015

8 Factors to Ensure the Sale of a Business
October 29, 2015• by • , , •

How to Sell Your Business Successfully I read an excellent article recently about how to sell your business, written by Brian Mazar, of American Fortune Mergers & Acquisitions.  He described eight (8) critical factors that are required to sell a business.  While the number of factors may well be more than eight, Brian did an excellent job of briefly and clearly explaining what makes these factors so important.   Price It Right – The price […]