One Big Customer, Two Options

So, you have one big customer who represents 50%+ of your revenue. I get it. You know what to expect of your major customer, and they know what to expect from you. It’s good work. But when a buyer looks at your business, they’ll see danger signs. What do you do? Option 1: Plan a …

Family Time Adds Business Value

Here’s some advice from your business advisor: go home and spend time with your kids. If you can’t do it for your family, do it for your business. The fact is, owners who dedicate all their time to work are often the ones who get less at the closing table. The group that spends time …

Buyers Want Your Talent

A tightening labor market like this is good news for M&A. According to M&A Market Pulse data released by Pepperdine University, IBBA and M&A Source, more than half (55%) of advisors expect the shrinking labor market will drive businesses to expand through acquisition. Firms are having a tough time growing organically because they don’t have …

7 Due Diligence Fundamentals You Must Know

People buy, sell, and merge businesses for many reasons. No matter the motivation, due diligence is key to a successful sale. An M&A Advisor can help guide you through the process. Historic and Projected Financial Information The seller must have prepared financial documents for the past three years. The buyer must review the company’s historical …

How to Build Your Company’s Value

As you build your company’s strategic plan, consider not only how to drive growth, but also how to reap long-term financial rewards. Most of your personal wealth is likely tied to your business. This means that maximizing your business’s value ensures an optimal return on your investment, helping you meet your financial goals. There are …

Make Sure Attorney is a Deal Maker

Reps and warrants are one of the top five negotiated items in a business sale. These tie back to legal and ethical issues like whether the business is yours to sell and that you stand behind your record keeping. Negotiations here can center around language like “absolutely true” versus “to the best of my knowledge.” …

How to Approach Valuation for Your Company

When you sell your business, you need to get the price right. If it’s too high, no one will bite. If it’s too low, you’ll get less than you should. Setting the right price, however, is not easy. Most sellers need to draw upon the expertise of a professional broker or appraiser. Several strategies can …

Gas in the Tank

In the lower middle market, most buyers want some gas left in the tank. They’re looking for a normal level of working capital, which would typically include inventory and receivables, minus accounts payable, averaged over 12 months. Problems occur when business owners get lax on working capital. They pay bills immediately while letting customers delay …

The Role of an M&A Advisor

Selling your business without assistance from a skilled M&A advisor is almost always a bad idea. The skill and experience of an advisor whose business it is to sell companies ensures that owners don’t go into the process poorly prepared or naive. Every sales process brings rough patches and challenges. A skilled advisor helps you …

Are You on the Trigger Plan?

When it came time to sell their business, less than half (43%) of all business owners planned ahead. What that means is that most business owners wait for some kind of trigger before they go to market. Those triggers are often negative in nature, stemming from a family health issue, conflict, or (most commonly) burnout. …