How To Sell While Capturing The Value Of A Growing Business
Posted by Ed Fixen on 6/29/2011 11:00:00 AM

In a recent article regarding the benefits of seller financing, I noted that the most significant benefit of seller financing was the ability to maximize the sale price of a business. An “earn-out” is a special type of seller financing that has become more common in recent years as a part of small and mid-size business acquisitions and can be an excellent strategy under the right conditions. An earn-out is particularly suited to enable a business owner to sell while retaining the ability to realize the full value of a growing business Read more...

Exit Planning Helps Increase Future Business Sale Price
Posted by Ed Fixen on 6/22/2011 10:30:00 AM

It’s very interesting that most business owners do not hesitate to buy and invest in insurance to protect their personal and business assets, yet don’t make the nominal investment in an exit plan that protects a business owner’s greatest asset, the value of their business when it comes time to sell. Not only does an exit plan serve to protect the value of your business, it should provide a significant increase in the net amount of money you realize when selling of your business. In the most simple of terms, exit planning helps a business owner get a higher price and keep more proceeds for the future sale of a business. Read more...

Industry Trends for Market-Based Valuation Multiples
Posted by Ed Fixen on 6/8/2011 3:00:00 PM

Almost all business owners wonder what their business is worth if they were to try to sell. The actual amount that a particular business sells for depends on many factors such as profitability, growth, industry, customer base, etc. However, it is always a good idea to keep an eye on trends and general benchmarks regarding the sale price of businesses in your industry.

The table below shows median values for market-based valuation multiples for the sale of privately-held businesses by industry for the three years ending 2009. Data analysis for 2010 has not been reported at this time.
 Read more...

Selling A Niche Business
Posted by Ed Fixen on 6/1/2011 4:50:00 PM

At least once a week I talk with the owner of a highly specialized, niche business who is thinking of selling. What is particularly interesting is the common perception that the only buyers for niche businesses are competitors in similar niche businesses and that their business would be extremely difficult to sell. In fact, businesses serving a niche market are just as attractive, if not more attractive, to investors and buyers not currently in that niche market and in my experience are often easier to sell than a business in a more mainstream industry. Read more...