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...