M&A deal activity is down slightly in the first three quarters of 2015 compared to 2014, and the outlook for the next 12 months is weaker than for the past three years, according to the Mid-Market Pulse published by Mergers & Acquisitions. In a monthly...
There is no denying that it can be awkward and sometimes problematic for company owners to tell their employees that they are selling. When it comes to planning a successful ownership transition, you’ll need to develop a coherent strategy and be ready to implement that strategy...
A successful ownership transition does not have to be difficult. In fact, with the right approach, you can learn how to make ownership transition a smooth process. Let’s take a look at five of the most trusted and proven tips for a successful ownership transition. Tip 1...
The typical business advice is to diversify and cross-sell your way to a “safe” business with a balanced portfolio of products and services. The idea is that when one area of the business is down, another area will be up. But the problem with selling...
In many small businesses the owner is involved in selling and may be the leading or only salesperson. That sounds like a recipe for profitability, plus the owner is the most passionate and knowledgeable advocate for the business. Therefore it’s understandable that if you are...
Normalizing adjustments change the income statement of a private company to show a prospective buyer or lender the return from normal operations of the business. One type of adjustment eliminates one-time gains or losses, non-recurring business expenses, and the like. Another type of adjustment is...
The million-dollar mark is a tipping point at which the number of buyers interested in acquiring your business goes up dramatically. The more interested buyers you have, the better multiple of earnings you will command. Since businesses are often valued on a multiple of earnings,...
Your industry is a major factor in determining the value of your company. Nevertheless, there are major variations in valuation for companies in the same industry. By analyzing the data you can find at least ten things that will make your company more valuable than...
Your industry partly determines the value of your company. Nevertheless, there are major variations in valuation for companies in the same industry. By analyzing the data you can find at least ten things that will make your company more valuable than your industry peers. Previously...
Many successful companies plan to buy other businesses to accelerate their growth and execute on their strategy. But finding the right acquisition target and closing a transaction takes time, money, and specialized skills. These truths are amplified in the fast-changing technology world, where there are...