Three Easy & Effective Ways to Negotiate

Far too many prospective business buyers and sellers overlook just how important negotiations can be.  But they can also be tricky. In general, there are three approaches to negotiations. Thinking through your negotiation strategies well before the time to buy or sell is a savvy and prudent move. Negotiation Tactic #1  Take It or Just Leave It In this negotiating tactic, the buyer makes an offer and the seller makes a counter-offer,... Continue Reading →

Red Flags are Not a Pretty Sight

When it comes to selling a business, sellers simply must pay attention to red flags.  Problems can always pop up, and that’s why they need to keep their eyes open. Rarely does a “white knight” ride in and rescue a business with no questions asked.  And if this were to happen, you should be asking, “Why?”  Until a deal is officially inked, sellers need to evaluate every aspect of a transaction to make... Continue Reading →

Buying? Selling? Seven Key Points to Consider

Buying or selling a business is one of the most important decisions that most people ever make.  Before jumping in, there are several points that should be taken into consideration.  Let’s take a moment to examine some of the key points involved in buying or selling a business. Factor #1 - What are You Selling? Whether buying or selling a business it is important to ask a few simple questions.  What is for sale?  What... Continue Reading →

Who Exactly Owns Personal Goodwill and Why Does it Matter?

Personal goodwill can have a profound impact on both small and medium-sized businesses.  In fact, it can even impact the sales of larger companies. Ultimately, understanding how personal goodwill is cultivated is of great value for any company. During the process of building a business, a founder builds one or more of the following: a positive personal reputation, a personal relationship with key players such as large customers and... Continue Reading →

5 LinkedIn Tips for Business Brokers

LinkedIn is a powerful tool for business professionals in a variety of industries, including business brokerage. Business brokers can utilize LinkedIn to keep their current network of contacts abreast of their latest activities and business for sale opportunities, strategically grow their network, gain new insights and knowledge, and ultimately close more deals. The following tips will give you a well-rounded path to success on LinkedIn:... Continue Reading →

Business Brokerage

A recent article posted on PR Newswire entitled “Business owners’ love of work may hinder succession planning” explains the parallels between the number of business owners with no plans to retire and the lack of succession planning. In a recent poll, over 70% of business owners said they are not planning to retire, don’t know when they will retire, or do not plan to retire for at least 11 years. The survey also reported that 2 out of 3 business... Continue Reading →

When Selling Your Business, Play to Win

If you are an independent business owner, you are most likely also an independent business seller–if not now, you will be somewhere down the road. The Small Business Administration reports that three to five years is a long enough stretch for many business owners and that one in every three plans to sell, many of them right from the outset. With fewer cases of a business being passed on to future generations, selling has become a fact of... Continue Reading →

Similar Companies Can Have Huge Value Differences

Can two companies in the same industry have very different valuations?  In short, the answer is a resounding, yes.  Let’s take an example of two companies that both have an EBITDA of $6 million but with two very different values.  In fact, Business One is valued at five times EBITDA, which prices it at $30 million whereas Business Two is valued at seven times EBITDA, meaning it has a value of $42 million. Value Difference... Continue Reading →

There’s No Business Quite Like a Family Business

The simple fact is that family businesses are different.  After all, a family business means working with family and all the good and bad that comes with it. While an estimated 80% to 90% of all businesses are family owned, relatively few are properly planning for what happens when it comes time to sell.  According to one study, a whopping 72% of family businesses lack a developed succession plan which is, of course, a recipe for... Continue Reading →

Around the Web: A Month in Summary

A recent article posted by The National Law Review entitled “Thinking of Selling? Start Early, Build Your Team” explains the importance of putting together a good team of trusted advisors well in advance of selling your business. Your team should include an attorney, accountant, investment banker, and wealth manager. This team will help you with various aspects of selling your business such as: Setting a realistic valuation on the... Continue Reading →

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