Most M&A experts agree that the ultimate transaction value of any profitable, on-going business is largely determined/ influenced by its cash flow, which is most frequently expressed as its adjusted, or normalized, earnings before interest, taxes, depreciation and amortization (EBITDA). …

One author has estimated there are 17,000 practicing intermediaries who assist business owners with the sale of their business.  So how do you pick the right one to represent you when the time comes to sell your business, which is…

Generally, the market for selling any business that has a consistent or improving trend in sales and cash flow is pretty good year in and year out.  There always seem to be more qualified buyers, who are eager to find…

In my experience, even when the business is priced to sell, this can vary widely depending upon the industry sector, the size of the business, the unique character of the business and its owner, and even the general state of…

This is the time of year when many business owners begin to think seriously about selling their business, and a question I am frequently asked is “When is the best time to sell my business?” In my experience, the very…

Most business owners are unprepared for the enormous amount of time and effort that will be required to prepare their business for sale, successfully market their business to find the right buyer and negotiate the right deal, and then get…

Lenders and investors know that approximately half of all businesses fail within the first four years.   Here are some of the most common reasons why. -Lack of a formal business plan, which is updated quarterly and shared with lenders and…

The wisdom contained in this familiar old adage was brought into sharp focus again on one of my recent engagements.  After this particular business had been on the market for six months we were fortunate to have four separate offers…

The definition of fair market value adopted by the professional appraisal community has as its foundation IRS Revenue Ruling 59-60, and is published by the American Society of Appraisers as: “The amount at which property would change hands between a…

In last month’s article we discussed two key factors in preparing your business for sale: — How indispensable is the founder/ owner? — General condition of equipment & facilities This month we’ll explore other key factors, including the extent to…