Much Ado About the Don’ts of Selling Your Business – Part 1

Part 1 of 3 | Selling your company can be an exciting exit strategy. Knowing that you have built a company of value and that someone is willing to pay for it is a strong indicator that you have done, and served, what could arguably be your biggest asset (aka your business) right. And because you have invested practically your whole self and resources into building your business into a success, you are right to expect the best price for it come closing time. To put this in perspective, eBusinessAppraisals.com has gathered several tips on what NOT to DO when selling your business. Business owners, take note: 1. Using inaccurate or incomplete documentation – Since you will be providing buyers with documents related to your business, be sure that the information in it is accurate and complete. Figures, charts, and other details included in these should be consistent throughout the whole process, so that when a determined buyer undertakes due diligence on your company, there will be no surprises or inconsistencies in your documents. Many deals fall through when business owners overlook or lie about certain data in their documents. 2. Not securing your confidentiality – Before beginning the transaction, be [...]

Read More

Your Business Exit Plan Starts Now

In today’s economy, most business owners are probably too preoccupied about making ends meet, paying off credit, and keeping the business afloat that the idea of exiting from the business might sound like a stretch. The fear of selling at a time of economic uncertainty is also another factor; business owners are wary of risking the sale value of their company which could be significantly diminished by the amount of credit available to prospective buyers. In this case, simply settling on a price is a grim option. More than ever, savvy business owners want to maximize their company’s sale value. But it is also true that planning your exit from your business as early as now is very important. Gary T. Brooks, the CEO of ExitPlanPros, a company that helps business owners grow their business while planning their exit, breaks down in six steps how to prepare for an exit plan*: Five Years Before the Projected Sale: Take stock of both your business and your personal financial goals and current situation. Once you set a timeline to guide when you want to exit your business, make the commitment to create a business Exit Plan. Even better, list particular tasks you need [...]

Read More

How Experts Determine Business Value

For many entrepreneurs, the world of business value is shrouded in mystery. Like the reclusive chocolatier Willy Wonka, professional appraisers might as well be living behind walled fortresses and conducting their valuations in complete secrecy. And yet these business valuations are produced day after day. How do they do it? How exactly is the value of a company determined? If you’ve ever wished you knew the answers to tease questions, consider this article your golden ticket, your pass to pull back the curtain and see just how we do what we do. [...]

Read More

Recent M&A Activity Indicates a Healthy Business Marketplace

Based on the following Thomson Reuters report about the recent global M&A activity, business owners can look forward to a robust business-for-sale marketplace in the coming months until next year: “Global M&A for Q2 2011 came in at $710 billion for 9,664 deals, compared to $786 billion (10,410 deals) in Q1 and $553 billion (10,407 deals) in Q2 2010. The driving sector was “high-tech” with a 16.1% market share of dollars, followed by financials (12.7%) and media/entertainment (12.3%). Private equity deal activity came in at $70.53 billion for 961 deals, compared to $53 billion for 983 deals the prior quarter. Q2 2010 had been $51 billion for 880 deals. High-tech also was the leading sector here (13.5% market share), followed closely by real estate (13.4%) and consumer products/services (12.2%).” There were fewer deals closed in the second quarter than the first quarter of this year, but the aggregate value of those deals closed in the second quarter is higher than the first.  And, in the same period last year, the second quarter of this year may have less deals closed, but it has significantly higher aggregate value. This shows continued expansion of the M&A market which is predicted to continue this [...]

Read More

The Next Brightest Industries: Your Guide to Business Planning

Industry forecasts are helpful guides in analyzing future business trends. Business owners can take advantage of this information by using it to prepare for the best course of action that would benefit their company, and even help map out the business owner’s path beyond running his company. IBISWorld, the world’s largest independent publisher of U.S. industry research, has just come out with its pick of the top five most promising startup industries for the next five years. To come up with the list, IBISWorld reviewed over 700 industries and analyzed their revenues, growth trends and profitability levels to determine which ones look most likely to grow. Here are the industries: 1. Testing and Educational Support – The tough job market is having a positive effect on testing and education businesses in that college students are opting to stay longer in school, and those who have been laid off are going back to school. From five years before up to 2011, IBISWorld reports that the industry grew at an average annual rate of 6.2% to $15.4 billion. Related industries with similarly positive outlooks include  trade and technical schools, business coaching and employment recruiting. 2. Internet and Technology – Demand for technology has [...]

Read More
Close