Tag: Equity

Deleveraging the Business

The economy is in flux, interest rates are increasing and lenders are tightening their loan covenants. Business executives need to aware of how leveraged their business’s balance sheet is and the loan covenants that relate to the debt. Business executives need to understand the best method for them to deleverage their business.   Deleveraging is…
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The Concept of a Business’s Value

Business Owners are always after a simple answer to the question: “What is my business worth?”.  Below are a few reasons why determining a business’s value is difficult, especially in the current financial environment.   There is NO universal (one size fits all) method for determining the value of a business   There are countless…
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How Time, Pressure and Money Affect a Business’s Value

Time, Pressure and Money is a theory that is key to understanding three key factors that affect the process of selling a business and the sales price.  The chart below shows the best postion for a business considering selling and the worst position for a business needing to sell.   As the chart shows, selling…
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Step Chart of Business Values

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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Selling or Buying a buisness

The Realities of Selling a Privately Owned Business

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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Chart of United State Homeownership Q1 1965 to Q1 2022

The FRED chart below is a view into homeownership rate over five plus decades in the United State. Homeownership is part of the American Dream and a large part of the American economy. Given the recent rise in house prices, the social economic question is whether the rise in home prices is because ownership is…
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Going Through Another Economic Downturn or Selling the Business

An economic downturn appears to be about to take place.  Business owners nearing retirement need to gauge whether they want to continue to run their business through the next economic downturn and economy recovery or sell their business now The key issue for business owners nearing retirement is whether they have the time and desire…
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Why a Proper Electronic Data Room is Important

Years ago, the data room for a M&A transaction was an actual secure room in the building filled with banker boxes stuffed with due diligence information and only one interested party at a time could gain access to the data room. If an interested party wanted to take information back to their office for additional…
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The Siburg Company Is Proud to Announce the Sale of Free Spirit Publishing to Teacher Created Materials

  The Siburg Company is proud to announce! The Siburg Company is here to help with your exit strategy! The Siburg Company specializes in sell-side and buy-side mergers and acquisitions advisory services. Contact us at (480) 502-2800

Selling or Buying a buisness

How Interests Rates Can Affect a Business’s Valuation

When it comes to either buying or selling a business, interest rates can affect a business’s valuation. Transactions, big or small, generally have some portion of the purchase price financed with debt. As the cost of financing the debt portion of a purchase transaction increases, the value placed on a business can go down to…
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