Posts Categorized: Business Owner

Defining Goodwill

You may hear the word “goodwill” thrown around a lot, but what does it really mean? When it comes to selling a business, the term refers to all the effort that the seller put into a business over the year. Goodwill can be thought of as the difference between the various tangible assets that a… Read more »

A Deeper Look at Seller Financing

Buying a business requires a good deal of capital or lender resources. The bottom line is that a large percentage of buyers don’t have the necessary capital or lender resources to pay cash and that is where seller financing comes into play. The fact is that seller financing is quite common. In this article, we… Read more »

Strong Selling Points: Let Your Strengths Work for You

“Independent business owner” is a phrase with two meanings. Of course, it means being the owner of an independent business. But another way to look at “independent business owner” is to let this phrase define the very personality of the person at the helm. Independent. Confident. Self-assured. Strong-willed. These are vital entrepreneurial attributes, but, ironically,… Read more »

What Are Your Company’s Weaknesses?

Every company has weaknesses; the trick is to fix them. There is a saying that the test of a good company president or CEO is what happens to the company when he or she leaves. Some companies–on paper–may look the same, but one company may be much more valuable due to weaknesses in the other… Read more »

Will this be the year you seriously drive up the value of your company?

If you have resolved to make your company more valuable in 2017, you may want to think hard about how your customers pay. If you have a transaction business model where customers pay once for what they buy, expect your company’s value to be a single-digit multiple of your Earnings Before Interest Taxes, Depreciation, and… Read more »

The Second Most Important Thing to Negotiate When Selling Your Business

When you get an acquisition offer for your business, it is natural to focus on the offer price, but your employment contract can be a key element of your remuneration. I know, you don’t want to be an employee but, when you sell, you’ll likely have to sign on for a transition period or earn-out… Read more »

Work “On, Not In” Your Business

For the better part of 40 years, Michael Gerber has been encouraging business owners to work “on, not in” their business. In this interview of Built to Sell Radio, you’ll hear some of Gerber’s sage advice and get a summary of his new book, Beyond The E-Myth, including: – Why every company should be built as a… Read more »

Inside the Mind of a Private Equity Investor

Frank Cottle led an investor group to buy Hi-Mark Software for 10 times EBITDA.  Cottle then sold a chunk for 15 times and ultimately sold his last tranche of equity for more than 16 times EBITDA to Lufthansa.  In this interview, you’ll get deep inside the mind of a private equity buyer and learn: – three… Read more »