Posts Categorized: Business Valuation

5 Key Factors in Transferring Your Business to a Family Member

The odds are that you’ve put a great deal of yourself into your business. Inevitably, the day will come when you have no choice but to walk away from your business and begin a new chapter of your life. Quite often, businesses are transferred from one family member to another. In this article, we will… Read more »

This Grasshopper Has Learned Well

David Hauser and his business partner founded Grasshopper in 2004. The company offers a virtual phone system for entrepreneurs, targeting a core market of businesses with 1 to 10 employees. Over the course of 12 years, they grew Grasshopper independently, without outside investment — a rare feat among fast-growing technology companies. By 2016,  Grasshopper was… Read more »

Niche Down To Jack Up Your Value

Gabriel Galvez founded Merger Labs to generate more leads for his investment banking clients by offering them digital marketing services. What started as a side project grew more quickly than anticipated, and within 18 months, Merger Labs was experiencing growing pains executing their marketing campaigns. The company needed operations help, but instead of building the expertise… Read more »

Fairness Opinions

Since one often hears the term “fair value” or “fair market value,” it would be easy to assume that “fairness opinion” means the same thing. A fairness opinion may be based to some degree on fair market value, but there the similarities end. Assume that you are president of a family business and the other… Read more »

Are You Asking a Reasonable Price for Your Privately Held Company?

Placing a price on a privately-held company is usually more complex than placing a value, or a price, on a publicly-held company. There are many reasons for this fact, but one of the top reasons is that privately-held companies don’t have audited financial statements. Why are Audited Financial Statements Lacking in Privately-Held Companies? Preparing an… Read more »

Examining the Mind of the Serious Buyer – 5 Points to Consider

Are you looking for a way to perfect your presentation to a prospective buyer? Understanding what the typical serious buyer wants will help you get your business ready for selling. Let’s turn our attention to look at what these types of individuals and entities really want. After all, your time is precious. 1. An Interest… Read more »

Is Now the Right Time to Sell Your Company?

Like many things in life, timing can be everything when it comes to selling your company. Every day more and more baby-boomers are now reaching retirement age. Soon, the market will likely be flooded with companies looking to sell. According to a 2016 survey of business brokers, 54% plan to exit in the next ten… Read more »

How Your Employees Can Boost Profits and Value

The simple fact is that without employees, you don’t have a business.  Given the tremendous importance of your employees, it is important to step back and reflect on the value associated with keeping those employees happy. There is a direct relationship between happy employees and happy customers.  A happy employee takes steps to ensure that… Read more »

From Broke To A $1B Sale

Tomas Gorny and his partner started a website hosting company called IPOWER in 2001 with nothing more than a credit card. Over the next six years, they built the business to $40M in revenue, which is when they merged with Endurance, a competitor. They ran the merged company, with Gorny as the largest individual shareholder, for four… Read more »

From 3x EBITDA To 13x EBITDA In Just 2 1/2 Years

Jeffrey Feldberg and Stephen Wells founded Embanet to help colleges take learning online.  Embanet provided hosting, tech support, course conversion, and then moved into helping universities and colleges fill the online programs.  Despite their unorthodox management style, Feldberg and Wells built Embanet to 200 employees in just 7 years. When they decided to exit, they had… Read more »