I came across this article by another Business Broker titled “The Case Of The Greedy Business Owner”. Please reserve judgment, read this article, and then see my questions below. Truth is truly stranger than fiction, and I continue to be amazed at how many times a business owner with their head in the sky comes [...]
In a majority of business sales, the seller gets a part of the sale price in forms other than cash. The times, terms and conditions of these other forms of payment, along with the upfront cash portion, all are part of what is termed the Deal Structure. Creative deal structuring is what separates novices from [...]
One of the most frequent reasons business owners see no value in getting their business valued is because they have heard of industry multiples. We often hear things like “In our industry, we sell for 24 months of revenues, i.e. 2x annual revenues”. Unfortunately, selling a business on revenue, or net profit, or EBITDA multiples [...]
Most small business owners do not see any value in paying for a formal appraisal of their business. Business owners have a price in mind when they get ready to sell, & usually this price is not based on a rigorous analysis of the earning power of the business. In my opinion this is a [...]
Who is a Strategic Buyer? If you are preparing to sell your business, and have done even a small amount of research, then you no doubt have heard of a mythical creature called the “Strategic Buyer”. This wonderful creature rewards your hard work by buying your business for fantastic multiples of revenues. If you have [...]
Most business owners underestimate the amount of effort and time required to sell a business. They suffer from what I call the “curse of knowledge”. They are intimately familiar with their business, its customers, its earning power, and all its warts and beauty spots. Unfortunately, they assume everyone else is too. They forget that most [...]
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