4 Reasons Selling a Business Isn’t Like Selling a Property

No sign with long shadow on white backgroundSelling a residential or commercial property is usually a taxing affair, but selling a business is much more complex. Even if you are selling a business alongside its property, it’s vital to know the differences between the two and have the right people help you reach the right buyer. Doing it incorrectly won’t just lose you money, it could cripple your business while you try and find a buyer. Below are four of the most common reasons that selling a business isn’t like selling real property. [Read more…]

Figuring Out Your Divestiture Strategy

A red pencil representing an asset needing to be divested.For those familiar with M&A, finding and acquiring new assets for your company is a vital part of its success. From a full on merger with a rival to a bolt-on acquisition of a specialized company, mergers and acquisitions bring new options and profitability to a business. However, the un-investment – the divestment – of these assets can be just as vital, as they stop being useful segments of your business. Figure out your divestiture strategy to help cut the fat from your company. [Read more…]

Seller Financing: Finding a Business Buyer

Your business is worth $10,000,000 if you’ll take $10 a day for the next million days!

Seller Financing, George and Company, Worcester, MAOnce a business owner has decided to sell their business, they want to sell their business as quickly as possible. Even after they’ve partnered with a business broker and had their business appraised, it might be hard to find an interested buyer with enough money to write a check. Just like having a perfect house on the market, rarely does the buyer pay cash. By working with a business broker additional financing options appear. What if, to get the most out of selling your business, you helped finance its sale? [Read more…]

Understanding Financial Metrics

Financial Metrics, George & Company, Worcester, MAA company’s job is to provide a service in exchange for money. This income of money into a business—is its cash flow—is the lynchpin on which a company turns. The amount of money that flows into and out of your business not only allows it to grow but to provide a gateway to more funding by showing the profitability of your business to investors. And if you want to sell your business (or buy someone else’s), having this data is vital to making the sale. [Read more…]

Price Dictates Terms and Terms Dictate Price

Business Valuation, George & Company, Worcester, MAWhile business valuation has its roots in complicated appraisal metrics, the real world of business valuation has roots in practicality. Imagine that you were recently laid off by downsizing corporate America. You have 2 kids in college and a significant mortgage on your home. You were earning $150,000 plus bonus per year but after severance that income stream is going away. Your executive talents are great but the work place does not have a job for you at your salary expectations/needs. Enter the real world of buying a business. The goal is to find a company that suits your vocational talents, is within a suitable geography and will be something you would be proud to own. [Read more…]

How to Value a Company: Part 2

How to Value a Company, George & Company, Worcester, MAWelcome back to our study of the different kinds of valuations for a company. Last time we talked about Asset Valuation, Capitalization of Income Valuation, and the Market Approach Valuation. You can read Part 1 of How to Value a Company here. This time we’ll be talking about an additional four types of valuation. [Read more…]

How to Value a Company: Part 1

How to Value a Company, George & Company, Worcester, MAWhat is it worth? Whether you’re buying or selling, this is the million dollar question—as well as the sticking point for many in an M&A negotiation. Many times the seller won’t provide a starting price, which means it’s up to you to figure out the initial offering. As a seller, without a clear idea of how much your company is worth you can encounter two problems: under-estimating your company’s value, which throws away your hard work and leaves cash on the table or overestimating the value of your business, which can lead to no buyers and maybe, no sale. This is why companies undergo professional valuations. [Read more…]

What is Middle Market Business?

Are small businesses really the engine of the economy? Are gigantic corporations the movers and the shakers? Politicians, economic professors, and media personalities will debate these questions for endless hours. In order to understand the different perspectives, it’s important to know what types of businesses there are. Businesses can be classified in a multitude of ways. However, there are three basic categories of businesses as it pertains to size: small, middle, and large market. Placing a company into one of these categories is usually determined by revenue, selling price, or number of employees. If someone uses the term middle market, it is important to distinguish exactly what metrics they are using. [Read more…]

Nip & Tuck: Bolt-On Acquisitions

Evolve or die. It’s a statement you’ve heard multiple times in your life and applied to various fields. The world loves innovators, and it’s this progress that turns the wheels of the world. In the business community, companies are continuous growing: and one of the major ways is through mergers and acquisitions. It’s a surge of new revenue, personnel, and experience, but also something even more important: change. One of the largest players in this field are the acquirers of niche companies in a process known as bolt-on acquisitions. [Read more…]