You can practice some back of the napkin math to value a company, but it’s not always reliable. A company with $3 million in EBITDA, may, as a general rule of thumb, sell at a 4x to 6x multiple. In other words, it might sell for $12 million to $18 million in an average market. […]
Beware the Benchmark Valuation Read More »
Deal structure can have a big impact on your after tax proceeds. The right structure can help you retain more of the sale price. For example, an F-reorg is a tax efficient method that allows you (the seller) to rollover equity into the buyer’s new entity without paying taxes on the rollover amount. Without using
“To win in the marketplace, you must first win in the workplace.” Those words of Doug Conant, former CEO of Campbell Soup Company, ring particularly true today. The talent market was tight before the pandemic, but now we’re in a critical state. Finding employees is a challenge for everyone. And if you’re selling your business,
Employee Retention Adds Business Value Read More »
It’s the New Year, that time when many business owners make a fresh resolve to develop their business. For some, that means updating equipment and driving sales. But others will focus on something more personal and possibly more pivotal: developing their leaders. GF Data shows that a solid management team will increase the valuation multiple.
Building Value Means Building Leaders Read More »
If you’re a business owner, you know that at some point you will have to transition out of your business. The question is, will the business transition to new ownership or will you have to shut your doors? The latest Market Pulse survey confirmed that roughly 55 percent of M&A deals fail and over half
Business Owners Have a Value-Expectation Disconnect Read More »
The proof is in the pudding. It’s not over ‘til it’s over. Don’t count your chickens before they’ve hatched. Pick your cliché. Just because someone makes an offer to buy your business doesn’t mean they have the resources to get it done. As a seller, you need to look at more than dollar signs on
9 Warning Signs Your Buyer Can\’t Close the Deal Read More »
You don’t want to hear this. You might even be a little offended. But when it comes time to sell your business, you are the least valuable part of the equation. Unless you’re sticking around with an ownership stake or long-term employment contract, your experience means very little to a buyer. What does matter? The
You Are the Least Valuable Part of Your Business Read More »
Not every company can go to market without an asking price. But for the ones that can, a no-price strategy gives the seller an advantage. Ask two professional valuation experts to determine your business value, and you’ll probably get similar numbers. But ask two or more buyers to value your business, and their target price
Selling Your Business? The Right Price May Be No Price Read More »
You may have heard about the unprecedented level of “dry powder” in the market. In the M&A world, we refer to dry powder as the cash reserves businesses keep on hand to fund acquisitions or future business investment. In the last few years, private equity firms have amassed record amounts of investor dollars, aka dry
What is Dry Powder? Read More »
When selling your business, your M&A advisor has multiple roles. Primary, of course, is marketing your business. They negotiate the sale on your behalf, steer the process through due diligence, and ensure everyone is on the same page around key negotiation points. But your M&A advisor is the quarterback, not the whole team. Your advisor
Choose an M&A Attorney When Selling Your Business Read More »
