Hope for Selling Your Underperforming Business

Over the years I have met with scores of underperforming business owners and have had to deliver the bad news that it is close to impossible to get an acceptable (to the owner) price for his/her business given the industry …
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Weighted SDE’s – Get Ready for Buyer Pushback

So it’s time to sell your business, and you want to critically assess your business’s recent performance to determine a fair market value for your company. The most important metric is of course SDE, seller’s discretionary earnings, the historical cash …
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The Surprising First Step after the Decision to Sell your Business

OK, so after years, maybe even decades, of owning and managing your business, you now think it is time to sell. What is the very first step you should take? Speak with a business broker? Consult your attorney? Your CPA? …
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Valuing Inventory in Business Transactions – Part II

Last month we addressed the role inventory plays in the value of service, professional, IT, retail, and distribution businesses. The issue of manufacturing inventory is generally far more complex than these other industries, and as such has earned an entire …
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Valuing Inventory in Business Transactions – Part I

How is inventory figured in the value of a business? For industries which have little or no inventory like service, professional, IT, etc., inventory is basically a non-issue in the valuation process. But for other industries such as retail, distribution …
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The Importance of Tracking your Perks

Most business owners pay themselves a salary through their company’s payroll system. In addition, a high percentage of business owners represented by Praxis Business Brokers “enjoy” some (or in a few cases significant) perks paid by the company and expensed …
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Cheapest Insurance Ever: Disclosure Schedules in an Asset Purchase Agreement

Things are looking good: you have accepted an offer on your business, and both you and the presumed buyer have signed a letter of intent. And the good news just keeps coming. The buyer has wrapped up due diligence with …
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Derailing a business sale: Beware of the Unknowns

A true story: when – 4th quarter 2015; where – Oakland County, MI; what – read on Our client, the owner of a very successful quasi manufacturing business, accepted an offer on his business from one of several prospective buyers …
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Making Sure Buyers Understand Key Deal Points

True Story: The following describes a real 2015 deal in which I was the business broker representing a very successful company being sold to a 45 year-old, well-educated buyer with both money and success in earlier business ventures. Given the …
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Don’t let this be you…

Business owners call us regularly asking for market valuations of their businesses and discussions of business sales prospects. We are always forthright as the valuations we establish are usually the benchmark prices for our listing and selling activities. Every month …
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