While some business are owned and operated by a single individual, many businesses are a part of something bigger. Co-owners, partners, or shareholders all have a stake in the company: so what happens when one of them is suddenly gone or on their way out? Many businesses that grow organically or through mergers suddenly find themselves in a situation where it’s not spelled out what the process is for when one of the business owners no longer wants or is able to continue their ownership. A standard solution for stopping this issue before it occurs is the Buy-Sell Agreement. [Read more…]
Whether you are selling your business, raising capital, or preparing your estate, an accurate business valuation is vital to taking the next step. Before the valuation begins, a business owner should understand the information which will be required. The process of determining the value of a business is no small task. Valuation is a balance of both art and science, and while the numbers will play the biggest role, presenting your company accurately and professionally will always be advantageous. Broken into 5 categories, here are twenty materials needed for a business appraisal the business owner will need to provide. [Read more…]
Selling 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…]
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…]
Your business is worth $10,000,000 if you’ll take $10 a day for the next million days!
Once 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…]