ExitAdvisor Blog

Cartoon & Tip

Why do Buyers suddenly pull out of a deal?

Buying a business, the buyer disappears!

It can be very discouraging when a buyer suddenly “disappears” from continuing the purchase of a business.

It happens all the time, and in many cases the seller never really finds out why.

The buyer could have a legitimate reason or have just gotten cold feet.

But also, the buyer may have received negative outside advice or doesn’t believe that the business is strong enough to overcome any uncertainties in the market or support servicing the debt.

A business owner must do a good job prepar…

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Does the Business Look Good on Paper?

ExitAdvisor - Does the Business Look Good on Paper?

Does the business look good on paper?

With few exceptions, buyers are looking for businesses that make money.

Sure, there are other factors that can make a difference such as equipment, client list, location, key employees, etc., but it is still all about the cash flow of the company.

Business owners have to constantly look at the company financials and make the tough decisions to increase margins, cut expenses, or even head in a different direction.

Showing good, solid cash flow will ulti…

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Selling a Business for a Premium Starts with Planning!

ExitAdvisor - Selling a business for top dollar

Business owners need to recognize that operating a business on a day-to-day basis is not the same thing as preparing it for sale.

There are many steps necessary in the planning process and it all starts with the AWARENESS of that fact.

It is in the best interests of a business owner to get professional advice early – business broker, mergers & acquisitions advisor, exit planning consultant or business coach – to understand what may need to be done for their business.

And the business owner …

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Someone is Going to Throw Money at Your Business? Really?

ExitAdvisor Toon & Tip

OK, everyone has heard about a few huge deals for technology companies over the years. But business owners rarely receive a premium for their business.

Buyers will look at all the important factors such as cash flow, key employees in place, profit margins and prospects for future growth, to name just a few.

Then they will try to purchase the business for the best deal possible. 

Business owners should consider having a valuation performed by a professional now and then begin preparations to…

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The Power of “NO”

The power of No

Business owners can be confronted with many yes or no decisions every day.  Some are small decisions with not much impact, but some are critical decisions that can affect the direction of the company, such as adding a new line of products or a new service. 

And many times, it can be much harder to say "no" than to just give in and say "yes" to the pressure of the moment. 

A good question to ask yourself to help make that decision might be "will saying YES risk the value of the company by was…

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Marketing programs to replace normal attrition

ExitAdvisor Cartoon & Tip

Most businesses will lose a certain amount of customers over time. This attrition can be caused by anything from customers who are unhappy to customers moving away. 

The value of a business has a lot to do with the expectations of a buyer being able to maintain the current revenue levels (in addition to opportunities to grow the business). Buyers will want to see proven marketing programs in place that will fill that ongoing “leaking bucket”.

Let's talk confidentially about the value of yo…

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Key employees in place can be very important in the sale of a business!

Key Employees in a Business for Sale

Key employees in place can be very important in the sale of a business!

Buyers are always interested to know if there are well-trained key employees that will stay with a new owner of the business. That expertise within the company's operations can be very important in the transaction and future performance.

Key employees can include top managers, department heads and other long-time employees in important positions throughout the company.  In order to sell their business, owners must give t…

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What will your industry look like in 5 years?

Business planning

Technology and the internet are essentially changing every business in some way or other. It can be challenging, but business owners must keep aware of what ‘s going on in their industry and where it is headed.

Some businesses have a bright future, others need to make drastic changes.  Business owners can search on the internet, go to trade shows and seminars, read books, articles, blogs, talk to others in the industry.

In order to have future value for a buyer, business owners can't ignore …

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