A great business is bought, not sold, so, if you look too eager to sell your business, you’ll be negotiating on the back foot and look desperate—a recipe for a bad exit. But, what if you really want to sell? Maybe you’ve got a new idea for a business you want to start or your… Read more »
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Posts Categorized: Building Business Value
5 Reasons Why Now Might Be The Right Time To Sell
Are you trying to time the sale of your business so that you exit when both your business and the economy are peaking? While your objective to build your company’s value is admirable, here are five reasons why you may want to sell sooner than you might think: You May Be Choking Your Business When… Read more »
Similar Companies Can Have Huge Value Differences
Can two companies in the same industry have very different valuations? In short, the answer is a resounding, yes. Let’s take an example of two companies that both have an EBITDA of $6 million but with two very different values. In fact, Business One is valued at five times EBITDA, which prices it at $30… Read more »
Third Time’s A Charm: From False Starts To Finishing Big
Scott Miller grew Miller Restoration to a $3M business specializing in cleaning up the mess caused by floods and fires. When a new business idea caught his attention, Miller decided to sell his business. After two false starts, he ended up successfully selling for 3.5 times pre-tax profit. Miller knew telling his employees would be… Read more »
Are You Running A Valuable Business?
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How To Avoid Disappointment When It’s Time To Cash Out
How do you avoid not being disappointed with the money you make from the sale of your company? Perhaps you’ve heard that companies like yours trade using an industry rule of thumb or that companies of your size sell within a specific range, and you want to get at least what your peers have received…. Read more »
Difficult Issues Often Attached to Valuing a Business
There is little doubt that valuing a business is often a very complex process. In part, this complexity is due to the fact that business evaluation is somewhat subjective. The simple fact is that the value of a business is often left to the mercy of the person conducting the evaluation. Adding yet another level… Read more »
How To Recover, and Thrive, After Splitting From Your Co-Founder
Four years ago Nexalogy CEO Claude Théoret was counting the employees he had to lay off. His company had burned through their $600,000 seed round of investment and he was running out of cash. An ugly split with a former co-founder had divided his team, and Théoret had to turn to his wife for a $40,000 loan. Jump… Read more »
One Tweak That Can (Instantly) Add Millions To The Value Of Your Business
If you’re trying to figure out what your business might be worth, it’s helpful to consider what acquirers are paying for companies like yours these days. A little internet research will probably reveal that a business like yours trades for a multiple of your pre-tax profit, which is Sellers Discretionary Earnings (SDE) for a… Read more »
Your Company’s Undocumented Worth
The valuation is a major factor that influences the overall selling price of the property. Business appraisals are based upon a multitude of criteria and indisputable records such as comparables, projections, discount rates, EBITDA multiples, and more. While the appraiser may have all the information he or she needs, the business elements might be overlooked…. Read more »
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