Dream Business Brokers When owners ask us about the value of their business, they often ask about multiples. Multiples are calculated by dividing the market value of similar companies that have sold by certain values found on the company’s financial statements. One of the questions a seller must ask is what is the basis of the […]
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Dream Business Brokers Plenty of issues can hurt your company’s value when you put it up for sale. Some are deal killers, making your company unsellable. But most problems are fixable, given some time and investment. Here are some that raise immediate red flags for buyers. Books that aren’t clear and clean. Both buyers and
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Many business owners decide to sell their company to a family member, most often one of their children. Do you need a business intermediary to help with this kind of transaction? There are several ways a third party can help make the sale smoother. Here’s what to consider. Is the exit plan and transition to
Selling Your Business to a Family Member? Here’s What to Consider Read More »
When prospective buyers start the due diligence process, vendor relationships are one factor they consider in their analysis. Here are a couple of questions they may ask. How concentrated are the company’s suppliers? Small companies can have simple handshake agreements with their suppliers since their orders are usually for commodities used in the manufacturing
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As we write this, we’re in an election year, and some people get skittish about making big decisions. They worry that a change in political leadership may mean a change in policies that will affect a company’s profitability. That might make some buyers take a “wait and see” approach to purchasing before the election outcome
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One factor buyers consider when considering purchasing a business is the number of customers it has. For many small to mid-size companies, customer concentration or having too few customers providing too much revenue is a serious risk factor. It’s risky for the business owner in several ways and a red flag for buyers. For business
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What it means for the sale of your company The new year brings in new laws affecting business owners nationwide. We like to watch for laws affecting our business owner clients and ensure we understand their potential impact on M&A transactions. One law that will affect small business owners going forward and comes with stiff
Corporate Transparency Act and Its Impact on Small Business Owners Read More »
Get a Head Start on 2024 Right Now. The end of the year is a time for reflection, and many business owners decide they’re ready to sell their company. Some make it a goal for the new year, but like most resolutions, you’ll get the best results if you start right now. The holiday season
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The UAW strike was settled in October. The new contracts will significantly raise costs for the automakers; one union leader was quoted as saying, “We wholeheartedly believe our strike squeezed every last dime out of General Motors.” The agreements include a 25% wage increase — more than all the raises that auto workers have received over the
How Your Expenses Impact Your Company’s Value Read More »
Your company’s buyer is purchasing your business. That includes physical assets, of course: equipment, inventory, vehicles. They’re also purchasing the accounts and contracts that you own. The final piece of the puzzle that the buyer expects to receive as part of the transition is perhaps your most valuable “asset”: your workforce. Without the skilled labor
Are Key Employees Really Key to a Sale? Read More »