Four important lessons on what you need to do before you think about selling your businessRead More
Topics: Selling Your Business Internally, Selling Your Business Externally, getting the best deal when selling your business, Back to School, Busines Transition Planning, Thinking about selling my business, Business owner education, baby boomer business owner
There are several different types of buyers in the business marketplace, including strategic buyers that are able to realize synergies through the purchase of your business, and financial buyers, such as private equity firms (PEFs) that are looking to invest in business to get a return on their money. While some financial buyers will want to buy 100% of your business, others will buy a controlling share and allow you to maintain some ownership as well so you may get the proverbial “second bite of the apple” when the business is sold again in the future.Read More
When business owners consider their selling options, the financial considerations are usually the focus because most owners believe that the higher the sales price, the better. In fact, most business owners have never stopped to consider how much money they really need to net from their business sale to achieve their financial goals. They have never done the math.Read More
Most business owners think that they simply will sell their business to a third party because they don’t have an option for selling their businesses internally and/or they think it will net them the highest dollar amount. While selling externally is often attempted, it is not often achieved. In fact, less than one in four of the businesses that go on the market for sale actually sell. Understanding the selling process, what buyers and lenders are looking for, and how to position the business can improve owners’ chances of success. But this takes time and effort.Read More
Topics: Selling Your Business Externally, taxes, selling my business, selling your business in 2016, selling to a private equity firm, taxes on sale of business, selling your business to a third party
For business owners who may be thinking about planning a business transition in the near future, it is important to know how personal and one-time expenses in the business will impact the value that they will receive. Because the business is worth only what a future owner expects to receive in cash flow from owning the business, it is important to consider the types of expenses an owner runs through the business and how those should be documented for the future owner in order to calculate the true future cash flow.Read More
We’ve said it many times: Selling your business is a process! And, it can be long and arduous – 9-12 months or longer. Make no mistake, there will be a tremendous amount of work involved. The world of third-party transactions is a complex world and an expert “team” is needed to make your transaction a success. Your team should consist of key players, including an intermediary – a broker or investment banker who will help you sell -- and a number of other key advisors who should be involved in the process.Read More
Selling your business to a third party can be a minefield for business owners if they don’t have the proper guidance when navigating the marketplace. This is a complex world of investment bankers, private equity groups, lenders, financial buyers, lawyers, and due diligence. Getting prepared for a possible transaction and minimizing taxes and fees takes time, preparation, and the assistance of a skilled advisory team. The “art” in the “Art of the Deal” is knowing how a buyer views your business, positioning it so you find the right buyer and negotiating the best possible deal.
If you believe that your best transition option may be to sell externally, or you are strongly considering it, you are not alone. This is the option most often attempted, but not often achieved. Many owners want to sell their business externally because they don’t know about other options.Read More
Owners that are planning to sell their businesses, either externally or internally, should spend some time figuring out their Wealth Gap—how much money they will need from the sale. In many cases, owners will be depending solely on the proceeds from the sale to fund the rest of their life. Those owners that have saved a lot of money outside their businesses will be less dependent on the proceeds from the sale. All owners should consider using the following three steps to determine their Wealth Gap.
Topics: Selling Your Business Externally