When a business owner decides it is time to sell, the next thing they often wonder is “who will buy my business?” Many private business owners tend to underestimate the number of buyers who may have an interest in their company. Buyers can be classified in two broad categories, strategic buyers and financial buyers. Strategic […]
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In every industry there’s an optimal time to sell a business and a less than optimal time to sell. When Selling a Business, Timing is KeyThe economy can play a critical role in determining the value you receive when you sell a business. While timing may help you sell at an optimal price, poor timing […]
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One question that comes up in many of our conversations with business owners is “when is the right time to sell?” The correct response to this question, and the honest answer, is “when everything is going well.” This answer is often a surprise to the owner, but is really true. Timing is Key When Selling […]
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What is a Letter of Intent (LOI) in M&A? The Letter of Intent (LOI) in M&A is a written, non-binding document which outlines an agreement in principle for the buyer to purchase the seller’s business, stating the proposed price and terms. The mutually signed LOI is required before the buyer proceeds with the “due diligence” […]
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Knowing the value of your business is critical to effective planning. There are three different methods to determine the value of a business: The Asset ApproachGoing Concern value – what are the assets worth in place with the business functioning, less the liabilities, so it’s equal to the net equity.Liquidation value – the net amount that would […]
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What is my business really worth? We hear that often, and it’s actually the best question a business owner should be asking as they are doing long-term planning.The short answer to “What is my business worth” is “it depends on many factors.”For a business to have value, it must be able to exist, separate and […]
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Business owners quite often receive information advising them how to increase the value of their business. In our experience, there is so much information that establishing priorities is overwhelming, leading to “paralysis by analysis.”Focusing on de-risking the business relates to addressing issues that affect a buyer’s perception of risk, which then impact the discount rate […]
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Back in 2005, our firm was engaged by the founder of a well-known Austin business that had been in existence for over 30 years. The company had revenue in excess of $10,000,000, an established brand, and a total of 75 employees. They had been very profitable, debt free, and the owner (then 70) owned the […]
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Achieving the maximum value for the business when it sells is the goal of every business owner. A business has value when it can exist separately and apart from its owners, when it has taken on a structure and culture of its own, or where there are processes, methods, products, property rights or anything else […]
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Business owners have been asking how the new Tax Cuts and Jobs Act (TCJA) will impact private company valuations. CPA’s, attorneys, and business valuation experts have composed analyses, and we will summarize the significant areas that impact our clients – the owners of privately held businesses.In general, most businesses will pay less in federal income […]
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