What Happens When You Wait Too Long To Sell Your Business?
It can be difficult to walk away from a business that’s turning a profit. But if you’re anywhere near your intended exit date, that may be exactly when you should be putting your company for sale!
Almost every business is destined to cycle through a growth, a maturity, and a decline stage. And the best time to sell is...Read More
The number of small business transitions continues to be strong for the first quarter of 2019. In fact, despite a small decline, small business transitions remain at historically high levels.
Looking at the Statistics
According to a recent BizBuySell article entitled, “Number of Small Businesses Changing Hands Dips Slightly, But Market Remains Ripe for Buyers and Sellers,” now is still very...Read More
When selling a business, maximizing value is of primary importance to the business owner. One element that can drag down business value is poor inventory management in the form of excess inventory. Maintaining proper inventory levels is essential to maximizing value.
When running a business, the goal should be to tie up as little cash as possible in inventory, while having enough inventory to...Read More
The IBBA and M&A Source Market Pulse Survey Report for the fourth quarter of 2018 has a range of interesting insights. The survey’s purpose is to provide an “accurate understanding of market conditions for businesses being sold in Main Street (values $0-$2MM) and the Lower Middle Market (values $2MM-$50MM). This national survey was designed as a tool for business owners and their...Read More
How Customer Concentration Affects Business Valuation
Customer concentration can be an issue when selling your business if any one client accounts for 15% or more of your company’s revenue. It can be a troubling situation to find yourself in because the fewer clients that contribute to your profitability, the greater the chance of losing a sizeable chunk of your income should...Read More
Where your money is concerned, myths can do damage. A recent Divestopedia article from Tammie Miller entitled, Crazy M&A Myths You Need to Stop Believing Now, Miller explores 5 big M&A myths that can get you in trouble. Miller points out that many of these myths are believed by CEOs, but that they have zero basis in reality.
Myth 1
The first major myth Miller explores is the idea...Read More
Seller’s market sentiment is down in all market segments except for businesses with $5 million to $50 million in enterprise value. Looking back a year, seller’s market sentiment has decreased notably for businesses valued between $1 million – $2 million, dropping six percentage points from Q1 2018 (72%) to Q1 2019 (66%). According to the Q1 2019 Market Pulse Report published by the...Read More
There are many things for you to consider as you think about the future of your business ownership: When is the right time to move on? How much money will I need? How do I even sell this business? These questions dovetail into an important decision you’ll try to make early in the process of planning your future: Whom you’ll sell or transfer your ownership to.
At the end of the day, business...Read More
Before buying any business, a seller must ask questions, lots of questions. If there is ever a time where one should not be shy, it is when buying a business. In a recent article from Entrepreneur magazine entitled, “10 Questions You Must Ask Before Buying a Business”, author Jan Porter explores 10 of the single most important questions prospective buyers should be asking before signing on...Read More