M&A Update

Stay Bonuses Will Add Value When Selling A Business

M&A Advisor Tip Beware the Benchmark Valuation 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...Read More

How M&A Will Respond to Next Recession

M&A Advisor Tip Deal killers: The I-Don’t-Know-What’s-Next Seller Is your identity tied up in your business? Do you know what you’ll do after selling? We look for signs that a seller is overly attached to their business. It’s a red flag, as these are the sellers most likely to dig in their heels, turn down good offers (even above...Read More

Small Business Values Up in 2021

M&A Advisor Tip Perks & Business Value Business owners take a number of perks from their business, from the standards like auto expenses, memberships, and insurance plans to extras like entertainment, vacations, or an additional family member on the books. Perks are a way for owners to be further compensated for...Read More

Value = Risk vs. Reward

Buyers value your business based on risk (real or perceived) and future cash flow. Consider potential business risks. What could prevent your company from realizing your forecasted earnings? Think talent, customers, suppliers, competition, cash flow. Strategize ways to reduce risk in each area, e.g. cross training, outsourcing, succession planning, customer...Read More

30 Second M&A Update – The happiest business owners know what’s next

M&A Advisor Tip Time Kills All Deals More than purchase price or structure, time is the most likely reason a business sale will fail. Time breeds frustration and fatigue. From irascible attorneys to disorganized brokers and licensing issues, plenty of factors can bog down a deal. Sooner or later one party or the other gets fed up and rationalizes,...Read More