The biggest surprise many business sellers receive concerns what parts of the business are actually being sold. What should presumably be a simple concept is regrettably often quite complex and not intuitive. Here is a primer on what you might encoun...
While there are few givens in business transactions, here is one: the presumed buyer of your business will not know as much about your business at closing (or even for months thereafter) as you, the owner-seller, know right now. This fact means that ...
If you have been thinking for a while about the possibility of selling your business, 2015 could be the year for you to pull the trigger.
The Great Recession is in the distant past for most businesses which means that business sellers no longer have...
So you are in the process of or planning on selling your business. You will need legal help on document preparation and tax advice on deal structure. What’s the big deal, right? You have been with the same CPA and used the same attorney for decades...
We will start this month’s blog with a familiar disclaimer: before making any decisions, you should consult a tax accountant familiar with your contemplated business sale. That said, here are some common tax issues which deserve your consideration ...
In previous blogs, we have discussed seller paper and SBA financing which with buyer cash often comprise the three major components of a business purchase. But what happens when a really good buyer (as perceived by the seller) wants to buy the busine...
When the time comes to sell your business, it is important to understand in which buyer category prospective buyers for your company typically fit: (1) individual buyers, (2) financial buyers, or (3) strategic buyers. While some buyers might actually...
Last time we discussed the fact that since the Great Recession, commercial banks have become asset-based lenders. This is a negative development to the business seller since most business sales require a buyer to pay a premium over asset value. Selle...
When the time arrives to transition your business to new owners, the first step is for you and your advisors to arrive at a price which both meets your expectations and will be accepted by prospective buyers. Step two is a frank discussion about how ...
## Measuring the value of your business with EBITDA and SDE
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is an accounting term used to measure the profitability of a business before expenses for interest, taxes, depreciat...
I am contacted regularly by prospective sellers who have been subjected to one or more of the following:
1. Retirement age has arrived
2. Health issues have occurred
3. A divorce settlement looms
4. Prolonged downturn in business revenues and/or pro...
