Business owners need to understand and accept that: Clean business and accounting records are important to the sales process. Internal pre-sale “due diligence” is the right and smart thing to do. A third party “M&A data room” needs to be used. It takes substantial time and effort to sell a business – time range of…
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There is no universal (one size fits all) method for determining the value of a business, as the Step Chart of Business Values demonstrates below. Most businesses fall with in the continuum of Fair Market Value, where a buyer is willing to make an offer and a seller is willing to accept an agreed upon…
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Business owners need to accept that: It might be better to liquidate the business than to try to sell it The revenue size of the business impacts the value of the business There will most likely be one buyer for a business rather than multiple bidders The offer is most often…
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Everyone has experienced the cost versus value decision. Should I buy the best or the cheapest product that I am looking for? Sure, there are times that buying a lesser quality or last year’s model will have little to no effect on the product you are looking to purchase. If you are buying a…
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By Daniel R. Siburg, CPA, CVA & Howard W. Fisher Three elements affect an owner’s ability to make an advantageous sale of a company: Time – How long can the owner take to prepare the company for sale and complete the sales transaction? Pressure – What kind of pressure is the owner under to complete…
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By Daniel R. Siburg, CPA, CVA & Howard Fisher Potential buyers for a company generally look hard at certain aspects of it, and vanish if they do not like what they find. Fortunately, the same practices that will help you run the business more efficiently and effectively on a daily basis will also help you…
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By Daniel R. Siburg, CPA, CVA & Howard Fisher Many business owners believe their companies have unique characteristics, which buyers will value highly, regardless of revenue volume and profitability. Based on this notion these owners also believe that conventional valuation approaches and methods are not applicable for their companies. While it is true that each…
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By Daniel R. Siburg, CPA, CVA and Howard W. Fisher Long before you are ready to think about selling your company, you may want to think about what creates value in it. The following are key factors in creating value. Seller’s Reputation Your business is known for its character and reputation in the industry. Your…
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By Daniel R. Siburg, CPA, CVA and Howard W. Fisher After careful consideration, you have decided to sell your company and turn your equity into cash, diversifying your personal wealth. Two basic types of transactions are available: asset purchase or stock purchase. An asset purchase is the most common form of a business sale transaction…
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By Bruce Haseley, SPHR, and Daniel R. Siburg, CPA, CVA Before employees who were part of a merger or acquisition can commit to a new business organization that resulted from the transaction, they need the answer to the one question they all share: How does this affect me? A 100-day employee-integration plan and an effective…
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