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Buying a Business
Musings and More About “Market” Terms in Transactions
An Overreliance on Market Terms Business professionals commonly negotiate transactions by reference to what is “market.” This makes great sense for the people who are responsible for negotiating price. Valuation and pricing methods are relatively tried and true after all, and math is an exact science. This is not to suggest that buyers and sellers […]
Retaining Tribal Knowledge For Your Company’s Long-Term Health
Tribal Knowledge: Be in the Know America is getting older. Not just in terms of it having a birthday every year, but in terms of the percentage of people closing in on retirement. You can thank the aging Baby Boomer population for that. What that says to me is that any company with a significant […]
Don’t Go It Alone: The Best Advisor You Can Hire Is Worth Every Penny
The Best Advisor You Can Hire Would Hire Herself, Too The best advisor you can hire will be a clever and a creative problem solver who interacts with you with total integrity, honesty, and ethical conduct. The worst? Someone’s goal of growing richer and richer at your expense- and that’s one of the better scenarios. […]
Succession Planning and Exit-Strategies Are Too Important to Ignore
Business owners say they understand the importance of transition planning, yet few actually plan their exit. What is going to happen when you finally relinquish day-to-day control over your business? Are you going to sell it and live off the proceeds? Do you have a successor lined up to continue your legacy? Only you can know but, whatever you have in mind, it pays to have a formal and well thought-out succession plan and exit strategy.
Pre-Sale: Cleaning Up Your Balance Sheet
Before you sell your business, make sure to minimize your expenses and maximize your presented earnings.
You’re a business owner who is contemplating a sale. Intuitively, you understand that it’s important to make your business look as attractive as possible to potential buyers. If you haven’t sold a business before, you probably don’t know the best way to accomplish this.
Seller Financing: How to Strengthen Your Deal
In the right circumstances, seller financing can be the key to negotiating a better deal or closing more quickly. Seller beware, however, because cash is king and you will have to sue a buyer who defaults on an obligation to pay a Seller Note.
How Do I Evaluate Multiple Offers?
If you are fielding multiple offers for your business, it is important to keep a sober perspective and to work toward strengthening your final agreement. As the seller, you probably have greater leverage in a multi-buyer situation, but that does not necessarily make it an easier sale.
What Is the Due Diligence Process?
Buying a business is not like buying other assets. Much of a business’ value is intangible, and many of its component parts are difficult to price correctly. A wise purchaser relies on the due diligence process for protection.
Leading the Process: Investment Banker vs. Business Broker
To hear from other experts on this subject, we recommend this webinar. The proper role of a financial intermediary is to connect two parties who haven’t figured out they need each other yet, and to help craft a better deal than those parties could have made on their own. If financial markets were perfect, you […]
What Is a Confidentiality or Non-Disclosure Agreement?
Mergers and acquisitions (M&A) typically begin with some form of confidentiality agreement, or non-disclosure agreement (NDA). The NDA offers protection for sensitive information that may come up during due diligence. The goal is to protect confidential information from a third party’s eyes.
