Posts Categorized: Business Valuation

How To Structure Your Earn-Out (Without Getting Burned)

Kristin Delwo co-founded Stacks, a software used by librarians.  Though the software was still early in its life, Delwo wanted to scale quickly and decided to look for a deep-pocketed acquirer.  Delwo was too early in her life-cycle to attract an all cash offer so agreed to sell her business putting much of her consideration… Read more »

When Your Best Acquirer Is Already On The Payroll

Would you consider selling your business to an employee? They’d probably fit the bill – good understanding of the business, passionate about your mission, and more likely to continue your legacy – but, they likely won’t have the cash to front such a large transaction either. When Lori Moen decided to step back from her… Read more »

When To Hire A President To Run Things

Jim Brown had been running TerrAlign, a software company that helps clients optimize their sales territories,  for more than two decades when he decided to promote Ken Kramer to run things as the company’s President. Kramer was so good at leading the business that Brown ultimately asked him to manage the process of selling it…. Read more »

What to Do When Something New Attracts your Attention

Jessica Tindel and her partner started Dream Enrichment Classes, a business offering after school programs in math and art 13 years ago. Tindel built the business to 60 part time instructors and 5 full time office staff when a new business caught her attention. Stretched thin and drawn to the potential of her new idea, she… Read more »

7 Big Questions to Ask Yourself Before Moving Forward

The first step towards successfully selling a business is finding a qualified business broker to work with.  Sellers should also ask themselves an array of important questions.  A recent article, “7 Questions to Answer Before Selling Your Business,” published by Good Men Project, has a great overview of questions sellers should answer before moving forward…. Read more »

The Other Half Of The Equation

To have a happy and lucrative exit, you need two things: 1.  A business that is ready to sell 2. An owner that is personally ready to sell …Yet so many owners fail to consider the latter and wind up crippled with depression because of their regret to exit – which is exactly what happened… Read more »

Buying a Business to Sell It

Connie Fenyo started out as an employee at Dye & Durham, a company that makes software for lawyers. She rose to Executive Vice President when she learned her boss was looking to sell the 200-employee firm. Fenyo decided to make a bid. She scraped together all the money she could find, borrowed (in return for… Read more »

How To Avoid The Hodgepodge Discount

Nobody likes paying for a hundred TV channels when all you want is a few, which is why so many people are dropping cable in favor of a subscription to only the select channels they’ll watch. Similarly, no investor wants to buy a business with a hodgepodge of product lines if they can’t figure out… Read more »

Why You Should Exit Your Business While You’re Ahead – A Cautionary Tale

The very best time to sell your business is when someone wants to buy it.  While it can be tempting to continue to grow your business forever – particularly when things are going well — that decision comes with a significant downside. Take a look at the story of Rand Fishkin who started his entrepreneurial… Read more »

A Must Read Article on Having Children Take Over the Family Business

  In a recent Divestopedia article entitled, “Kids Take Over the Business? 8 Things to Consider,” author Josh Patrick examines what every business owner should know about having their children take over their business.  He points out that there are no modern and accurate numbers on what percentage of businesses will be taken over by… Read more »