Business Owner's Guide to M&A Terminology

Posted by Bob Maiden on Tue, Apr 25, 2017 @02:16 PM

The reality is that you will not own your business forever. The baby boomer generation owns close to 70% of the estimated 4,000,000 lower-mid market businesses in the U.S. ($2mil - $20mil revenues). And the number of family owned businesses that are transitioned to the next generation is on the decline. The convergence of these statistics is that over the next 10-15 years a large number of privately owned businesses will be on the market.

Entrepreneurs/business owners have some contrasting qualities; part risk taker – part strategic planner and deciding to sell your business will take a significant amount of both. But one thing is f

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Will this be the year you seriously drive up the value of your company?

Posted by Paul Visokey on Fri, Jan 20, 2017 @02:43 PM

 

If you have resolved to make your company more valuable in 2017, you may

want to think hard about how your customers pay.

If you have a transaction business model where customers pay once for what

they buy and do not return, expect your company’s value to be a low single-digit multiple of your

Earnings Before Interest Taxes, Depreciation and Amortization (EBITDA).

If you have a recurring revenue model, by contrast, where customers subscribe

and pay on an ongoing basis, you can expect your valuation to be a multiple of

your revenue.

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Topics: Recurring Revenue

Selling your business? Here are the top industries for 2016...

Posted by Kevin Freeman on Wed, Mar 02, 2016 @12:00 PM

The numbers are in!  BizBuySell.com, the internet’s largest business-for-sale marketplace, has released their Fourth Quarter 2015 Insight Report, cataloging the top industries for small business sales at the end of 2015.

And there’s some great news: BizBuySell.com reports that 2015 saw 7,222 closed business sales, just shy of 2014’s record-setting 7,494--the busiest year for business sales since they started tracking marketplace data in 2007.

The Philadelphia metro area, including Camden, NJ and Wilmington, DE was among the 15 most active market for business sales, out of the 68 BuzBuySell.com reported on, holding on to it’s place amongst the best markets to for selling your business.

So if you were going to sell your business this year, which industries are the strongest?
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Buy vs. Build: Now may be the best time to sell your business

Posted by Kevin Freeman on Mon, Feb 15, 2016 @01:30 PM

If you’re starting to wonder if it’s time to sell your business, you’re no doubt wrestling with a  big decision. Do you liquidate the business or attempt to sell it? In past years, while the economic landscape was weaker than it is today, it was difficult to sell anything--even a successful business. But all of that is changing.

The New York Times reports that there is a growing trend of entrepreneurs that prefer to buy a small business rather than starting one themselves.

Why would somebody want to buy your business?

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Topics: Selling your business

Selling a Business: Recasting to EBITDA

Posted by Chad Byers on Mon, Nov 30, 2015 @10:00 AM

If you're considering selling a business, it is important for you to start by understanding the true range of value, and what impacts your every day business practices can have on that range.

The market value of a small business can vary greatly from the book or tax mitigated value because most small businesses are managed to minimize taxable income. While this benefits the current owner, it's impact on how cash flow is reported will look less appealing to a potential buyer. Below, we'll show you how to mitigate that by performing a financial recast to calculate the true earnings of the business.

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Topics: selling

Exit Planning

Posted by Kevin Freeman on Tue, Aug 25, 2015 @12:33 PM

“Failing to plan is planning to fail”

Every business owner, regardless of size, should have an exit strategy for his or her company. Failing to have a sound, up to date exit plan could cost an owner hundreds of thousands or millions of dollars in sale price.

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Topics: sell your business, Selling your business, exit, sell, selling, exit planning