Draft Your Team

When the NFL season kicks off, fantasy football drafts are at their peak. Everyone does their research to figure out who will be the big picks that will lead them to victory. Unfortunately, some business owners put more effort into choosing their fantasy football teams than putting together a mergers and acquisitions (M&A) team to …

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 …

The Business Wisdom of King Solomon

“If you split the baby in half, you’re not getting the value of half the baby.” That’s what a buyer said to me recently, after evaluating a division of a company my firm is representing. The business owner/seller runs a profitable import operation that retails products via e-ecommerce sites like Amazon and Walmart.com. He’s looking …

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 …

Shotgun shells after business breakup

My client called it the shotgun clause. It’s an exit strategy written into some shareholder agreements, creating a compulsory buy/sell provision when two or more owners can no longer get along. Here’s how their deal worked (many variations are possible): One owner “triggers” the shotgun clause by offering to buy out their partner at a …

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 …

Accurate accounting doubled business value

You made it. You’ve paid back your business loans and can run your company with just a line of credit. You’re profitable. You’re comfortable. And you don’t have to pay such rigorous attention to things like accounts receivable turnover and your particular accounting methods. Many of the business owners I work with have reached this …

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.” …