ExitAdvisor Blog

Cartoon & Tip

Selling Price Must Be Justified & Competitive!

Selling Price of Your Business

Business owners oftentimes want more money for their companies than buyers are willing to pay. 

Owners must realize that there are many factors that make a business sellable, but cash flow is still the most critical issue. They must understand the elements of cash flow and how it affects the price.

It can be very helpful to work with a business broker or mergers & acquisitions advisor to begin the planning process to be able to put the business on the market for top dollar when the time comes …

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Is the business built for the future?

Industry awareness

Changes in the market and technology are moving so fast these days that many business owners are having trouble keeping up.

If the business doesn't project a strong future, it obviously will not sell for top value or maybe won't have any value at all. 

Business owners must constantly be aware of what is happening in their industry and their own markets to see what steps they must take to ensure the strength and value of their company when they are ready to sell. 

Thinking of selling your …

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Selling a business can be an emotional rollercoaster!

Selling a business can drive people crazy!

There are many emotional issues that can make the process of selling a business very stressful.

The negotiations over the price is usually the big one, but there are many others.

Sellers are usually very concerned about what will happen to their employees.

Then there is the whole idea of leaving the company and moving to a new chapter in their life.

Sellers must know that it is common for the process to be filled with emotional ups and downs and must be prepared to deal with all those issu…

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Why does it take so long to sell a business?

Why does it take so long to sell a business?

Why does it take so long to sell a business?

Business Owners must be aware that the process of selling a business is complex and can take time.

Each business is unique and there are many steps along the way --  particularly if the deal includes outside lender financing. If it shows strong cash flow, it usually will sell quicker.  And when the financials are clean and straight forward, it makes it much easier.

Business owners must prepare their business for sale so it looks attractive to buy…

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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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