Posts Categorized: Seller FAQ

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 »

IBBA and M&A Source Market Pulse Survey Report Predicts Major Changes

The IBBA and M&A Source Market Pulse Survey Report for the fourth quarter of 2018 has a range of interesting insights.  The survey’s purpose is to provide an “accurate understanding of market conditions for businesses being sold in Main Street (values $0-$2MM) and the Lower Middle Market (values $2MM-$50MM).  This national survey was designed as… 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 »

How To Avoid The Idiot Tax

Kenan Hopkins spent 7 years paying what he calls “the idiot tax”, until he learned the more efficient way to run a business. Kenan Hopkins founded his delivery food service company, Blue Ridge To Go, with no real management skills, no idea how to run a business, a lump of personal credit card debt, and… Read more »

Thinking About Succession Planning

If you haven’t been thinking about succession planning, the bottom line is that you should be. In the February 20, 2019 Divestopia article, “All Companies Need to Look at Succession Planning,” author Brad Cherniak examines the importance of succession planning. Owning and/or operating a business can be a great deal of work, but it is… Read more »

Could the Red-Hot Market for Businesses Be Cooling Down

The economy is red hot, and that fact is translating over to lots of activity in businesses being sold.  However, it is possible that this record-breaking number of sales could cool down in the near future. In a recent article in Inc. entitled, “The Hot Market for Businesses is Likely to Cool, According to This… Read more »

How to Lose $200 Million

You’ll never know the ideal time to sell your company — but in many cases, it’s when someone’s willing to buy it. Rand Fishkin, the bestselling author of Lost & Founder, learned this lesson the hard way when his company Moz received a $25 million dollar offer from HubSpot despite only expecting to do around… Read more »