BusinessQuestBrokers.com Tue, 17 Apr 2012 9:51:42 PT http://www.businessquestbrokers.com/blog/ How to buy or sell a business. en-us ed@businessquestbrokers.com Business Brokers Copyright 2012 BusinessQuestBrokers.com. All rights reserved. Most business owners and professionals in the mergers and acquisitions market like to keep tabs on valuation trends and current market-based valuation multiples for business acquisitions. This article highlights some of the results reported in the Pepperdine Private Capital Markets Winter 2011 Survey regarding some very interesting insights into recent mergers and acquisitions activity, including median industry valuation multiples. 10/28/2011 11:45:00 AM http://www.businessquestbrokers.com/blog/?=2011-10-28-what-is-the-median-valuation-multiple-for-your-industry Last week our weekly blog discussed the ‘Market for Selling Privately-Owned Businesses.’ ‘Salability’ addresses both the market for a specific business (i.e., demand) and the factors unique to that business sale that determines the probability of success. 10/21/2011 2:09:00 PM http://www.businessquestbrokers.com/blog/?=2011-10-21-how-salable-is-your-business The overall market for selling privately-owned business acquisitions continues to be highly industry dependent and size driven. Even during the recession we have been able to successfully help our clients sell businesses of various sizes and industries; however we have observed some general business sales and acquisition trends during that time. 10/14/2011 7:22:00 AM http://www.businessquestbrokers.com/blog/?=2011-10-14-the-market-for-selling-a-privately-owned-business In my role and experience as an business broker, it is often the manner in which deals are structured and executed that help preserve the capital of a seller that can be equally as important as the price and terms of a business sale. Another tool that business owners should consider when it comes time to sale a business is to potentially defer and minimize capital gains tax liability through the use of a deferred or structured sale vehicle. 10/7/2011 12:39:00 PM http://www.businessquestbrokers.com/blog/?=2011-10-07-minimizing-capital-gains-tax-in-a-business-sale When investigating the acquisition or sale of a business, one of the key questions should be, “What’s included in the price?” Of course each business acquisition is unique and negotiable but this article highlights the more common topics to be addressed when determining what is included in the price of a business sale. 9/30/2011 9:31:00 AM http://www.businessquestbrokers.com/blog/?=2011-09-30-whats-included-in-the-price-of-a-business-for-sale When it comes time to value and sell a business, it is only human nature that most business owners have an inflated opinion about the value of their business. Unfortunately, overpricing a business and not relying on an objective, independent business valuation can lead to many problems and end up costing just as much as an undervalued business. 9/23/2011 10:22:00 AM http://www.businessquestbrokers.com/blog/?=2011-09-23-simple-reality-check-for-price-of-a-business The role of assets in determining the value of a business is not as intuitive or simple as many business owners might think. This article highlights that the nature and quality of a company’s assets are very important factors in the overall consideration of business value and day-to-day operations, but ultimately in the valuation of a profitable, going-concern it is the income stream generated by a business that most directly determine business value. 9/15/2011 8:22:00 AM http://www.businessquestbrokers.com/blog/?=2011-09-15-role-of-assets-in-determining-business-value Understanding acquisition financing options is important whether you are a buyer seeking to acquire a company or an owner considering selling your business. For a buyer, available financing options will play an important role in determining minimum equity investment, debt service, post-acquisition cash flow and return on investment. 9/9/2011 8:15:00 AM http://www.businessquestbrokers.com/blog/?=2011-09-09-acquisition-financing-what-are-the-options Most business owners will only sell a business once in their lifetime. Given that selling a business can be the single most important financial event in a business owner’s lifetime, it should be helpful to have a basic understanding of some of the common myths or misunderstandings when it comes to selling a small or medium sized privately-held business. 9/2/2011 12:28:00 PM http://www.businessquestbrokers.com/blog/?=2011-09-02-three-myths-of-selling-a-business Most business owners mistakenly believe that they should only sell their business when they are ready to retire. While that is certainly one option, the option of staying on in a management role or part-owner after selling a business is just as viable and perhaps the better exit plan option in today’s business marketplace. 8/26/2011 3:30:00 PM http://www.businessquestbrokers.com/blog/?=2011-08-26-selling-a-business-doesnt-have-to-mean-retirement Entrepreneurs that want to be their own boss and manage their own business must face the question, “Should I buy an existing business or should I start one from scratch?” There are advantages/disadvantages to buying a business and advantages/disadvantages to starting a business. 8/19/2011 10:23:00 AM http://www.businessquestbrokers.com/blog/?=2011-08-19-start-or-buy-a-business In business valuation, business goodwill is that portion of the value of a business that exceeds the value of the tangible assets of a business such as equipment, inventory, etc. Goodwill is an important concept because in a sense it is a key measure of how successful a business has been operated and managed. 8/8/2011 2:00:00 PM http://www.businessquestbrokers.com/blog/?=2011-08-08-what-is-business-goodwill One of the many complicated issues that business owners must face when it comes time to sell their business is whether the deal should be structured as a stock sale or as an asset sale. This article some of the issues and considerations related to evaluating whether to structure a business sale or acquisition as an asset sale or a stock sale. 8/3/2011 2:19:00 PM http://www.businessquestbrokers.com/blog/?=2011-08-03-selling-a-business-asset-sale-vs-stock-sale Many business owners and baby boomers have put off selling their business and retiring because of the economy. Fortunately for some business owners, the fundamental laws of supply and demand still create opportunities where the trend towards a buyer’s market in the merger and acquisition marketplace has been offset by the low supply of business acquisition opportunities relative to the high number of buyers within some industries. 7/27/2011 2:30:00 PM http://www.businessquestbrokers.com/blog/?=2011-07-27-supply-and-demand-major-factor-when-selling-a-business One strategy that is often overlooked is the use of “personal” goodwill for the benefit of both parties in an acquisition. This article identifies and discusses personal goodwill as a simple strategy that should be explored with your accountant when buying or selling a business. 7/20/2011 2:30:00 PM http://www.businessquestbrokers.com/blog/?=2011-07-20-personal-vs-corporate-goodwill-dont-overlook-this-option When it comes time to sell your business, it will be important and helpful to understand the type of business buyers you will encounter. The different types of business buyers have varying objectives and strategies, and therefore will have different advantages and disadvantages from the perspective of the seller. 7/15/2011 8:00:00 AM http://www.businessquestbrokers.com/blog/?=2011-07-15-what-type-of-buyer-is-right-for-your-business It is normal for an owner contemplating the sale of their business to want all cash or nearly all cash for their business. There are several compelling reasons why business owners should consider some level of seller financing when it comes to selling a business, not the least of which is an increased selling price. 7/13/2011 2:30:00 PM http://www.businessquestbrokers.com/blog/?=2011-07-13-deal-terms-can-increase-the-sale-price-of-a-business For most small and mid-size business owners, it is very easy to get caught on the daily treadmill of tending to daily operations. Benchmarking done properly is very informational and a valuable part of any exit plan to identify opportunities to improve and increase the value of your business. 7/6/2011 5:45:00 PM http://www.businessquestbrokers.com/blog/?=2011-07-06-benchmark-your-business-to-grow-and-create-value 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 particularly suited to enable a business owner to sell while retaining the ability to realize the full value of a growing business. 6/29/2011 11:00:00 AM http://www.businessquestbrokers.com/blog/?=2011-06-29-how-to-sell-while-capturing-the-value-of-a-growing-business