I Want What They Got

Sometimes sellers hear that a business in their industry got a certain multiple, so they want the same number. But multiples depend on several factors, especially the size of the business being sold. For Main Street deals, multiple are typically based on SDE without working capital (approximately 2.5-3.5x SDE in 2016). In the lower middle …

Five things that can affect the value of your business

Five things that can affect the value of your business By Brad Kirkpatrick There are five dismal Ds that can affect your business: – death – divorce – disability – disagreement – departure But a regularly updated estimate of value (EOV) can limit conflict when the D’s hit. A current EOV protects against value disputes …

Ask the right questions about future performance when buying a business

Warren Buffet once said, “If past history was all there was to the game, the richest people would be librarians.” When it comes to buying a business, past performance is important. But you can’t get so tied up in historicals that you forget to ask the right questions about future performance: – Management team –What’s …

Messy Accounts Mean Sale is Numbered

Messy Accounts Mean Sale is Numbered By Jeff Kelling – M&A Advisor Clean up your books before a sale. Have your financials audited or bring in an expert to get your accounting numbers as solid and accurate as possible. Studies have shown that the more specific you are with your numbers, the more trust you …

The New Middle Market: How M&A Advisors Add Value

M&A is finally pulling itself out of the proverbial dark ages. The middle-market CEOs of today benefit from greater transparency, and therefore more insight into relationships and other deal-related information than ever before. Investors and buyers who wish to succeed take a proactive stance, connecting with CEOs to analyze opportunities. CEOs can now meet capital …

For Value, Seek Boundaries Not Burnout

For Value, Seek Boundaries Not Burnout By Jason D Tuzinkewich – CBI, CM&AP Too often, I hear from business owners who “vacation” with their family, only to stay back in the hotel glued to a computer or phone while their spouse and kids have fun without them. Take the time to coach your management team …

Invest in an Audit

Invest in an Audit By Brad Kirkpatrick If your business has sales of $10 million or more, have your financials audited for three years before you go to market. Even smaller businesses may find that an audit makes sense. Consider it an investment. With well-organized financials, audited by a respected firm, you will have a …

Know What You Need

Know What You Need By Jeff Kelling – M&A Advisor Get an estimate of value on your business. Then sit down with a tax accountant and figure out what you’ll net after taxes and fees. Next, meet with a financial advisor and talk about your ideal lifestyle and all the things you want to do …

Know What’s Next When it’s Time to Sell

Know What’s Next When it’s Time to Sell By Rodney Ott – M&A Advisor When it’s time to sell, will you be running away or running to something? Selling your business can be a particularly scary time when you don’t know what you want to do next. You have a blank slate you can fill …

First impressions are critical

First impressions are critical By Jason D Tuzinkewich – CBI When selling your business, one of your biggest hurdles will be that first management presentation or facility tour. This is the first time you’ll meet the buyer face-to-face. This is often a two to six hour meeting. We’ve had sellers knock it out of the …