This article originally appeared on Chris George's LinkedIn.  In 35 years of valuing & selling other people's businesses as a business brokerage, it's always been a Seller's market for a solid company introduced to the market BUT things are changing. I'm not referring to our sister firm GEORGE & Co. that specializes in middle market Mergers & Acquisitions because private equity is still sitting on an estimated $1 Trillion in dry powder they need to spend....

All business owners think about selling their business at one time or another. Best terms? Many business sellers don’t think about the fact that the terms of the sale can have a lot to do with the valuation and the net amount of dollars in your pocket after taxes. We tell people who are thinking about the sale of their profitable business, that we will give them a million dollars if they will take a dollar down and a dollar a day for the next million days. We might double that if we do not ...

For many entrepreneurs, the idea of selling their business may be a vague notion far off in the distance, or may not even be on their radar all. Not everyone builds a business with the intention to sell. However, it is mistake to avoid building an exit plan into a business, no matter how adamant one is on the belief that they will never sell their startup. Even without plans to sell, a business with a high sellable value tends to be more profitable, more enjoyable to run, and more beneficial ...

Once a business owner has determined that they are ready to sell their business, many will wonder whether or not the timing is right for receiving an optimal price. Certain factors such as the state of the business, market conditions, bank lending and buyer intentions may determine the appropriate time to sell. The following guide outlines some indicators that may be useful in assisting buyers with choosing the correct time when to sell your business....

A business’s reputation is not only vital to the success of a business, but it can also play a part in the business’s value when it comes time to sell. Reputation management should be an integral a part of every business plan. In truth, business reputation should be regarded as a business asset, since it is seen as highly important when it comes to the valuation of a company. While it may be more difficult to measure, reputation still contains worth. Despite this, many businesses tend to igno...

Oftentimes, when people explore the idea of selling their business, they find themselves overwhelmed by foreign terminology and are unsure of where to begin. While many people have heard the term “business broker” used to describe someone that buys and sells businesses, this does not cover the full scope of the market. In fact, depending on the type of company being bought or sold, a business broker might not be the appropriate person to address at all. The mergers and acquisitions industry i...

“Dry powder” has proved to be a hot topic within both the M&A and private equity industries in recent months. “Dry powder” refers to the unused capital resting in the hands of private equity firms that has yet to be invested. While private equity firms are currently sitting on an accumulation of over one trillion dollars’ worth of capital that is available for investing, they have held back due to a lack of viable prospects. Learn how to use dry powder in private equity to sell your business...

When a business owner contemplates the sale of his business, the idea of hiring a real estate agent (sometimes referred to as a real estate broker) may seem reasonable, especially if commercial property is included in the sale of the business.  The owner may also believe there is an opportunity to save money if the real estate agent charges a lower commission than a business broker.  In truth, many business brokers have real estate licenses, making them capable of selling the property just as we...

Many entrepreneurs may ask themselves if they should begin to consider walking away from their business, perhaps more often than most would imagine. When the business is not performing up to the owner’s expectations, or the owner has begun to lose interest in the responsibilities that come with managing a startup, it is an opportune time to examine the available possibilities. While entrepreneurial personalities do not tend to be swift to surrender, sometimes it may be a positive choice to exit ...

Some entrepreneurs decide to start a business with the sole purpose in mind of selling it to a business buyer. While creating a business with a built-in exit plan may seem somewhat counter-intuitive, this plan of action actually makes sense from a financial and M&A standpoint. Most likely the business owner will have the desire to sell (or pass on) their business at some point in time; for example, when they want to retire. Businesses that are structured around the intent to sell will typica...