ENTREPRENEURSHIP THROUGH ACQUISITION
A Reliable Alternative To Chasing Unicorns
Valuation Methods Potential Buyers Use
It's important to be on top of the types of valuation methods potential buyers might use to put a number on your business.
If you're not familiar with the different types of approaches used in the current market, check out what the pros had to say about the most common methods acquirers are using to start the discussion and frame their potential offer.
Most Common Motivation for Owners Selling their Businesses in this Market
In a seller's market, there are countless reasons business owners decide to pull the trigger and take their baby to market.
Maybe they've been cold-called by a buyer.
Maybe they just want to get out while the getting is good.
Maybe their risk tolerance has decreased and it's time to diversify.
Exit Planning Challenges When Transferring Business to Family & Multi Family Office
When you're ready to pass on your business to your family, it's important to make sure that everyone is on board and understands the challenges that are ahead for successful exit planning. While many owners are worried about losing control, diligent business exit planning is key to ensuring that everything goes smoothly. There are many ways to maintain ownership while still giving family members a stake in the company. You can create a succession plan that allows you to transfer ownership gradually over time to avoid disrupting operations and giving family members time to learn the ropes. You should also consider creating a buy-sell agreement that outlines what will happen if one member dies or becomes incapacitated and cannot work in the business anymore. The deal origination agreement should include…
Deal Team 101 - The Role of The Accountant
Having an accountant on your deal team is a great sanity-check for your company valuation before you go to market.
Be careful, as accountants don't typically have their fingers on the pulse of the actual buyer market.... -what the most likely, most attractive potential buyers of your business will actually pay.
Things to consider when choosing an attorney
What questions should you ask when choosing a potential attorney to represent you as you move towards selling a business?
What relevant experience should your attorney have to be considered best "qualified" to represent you and your business through to the transaction close and beyond?
Exit Strategies Through SPAC
An increasingly popular and controversial exit option for companies with enough marketable traction is the Special Purpose Acquisition Company (SPAC).
The Top Issues That Can Make or Break a Successful Transaction
Clean financials?
Dummy-proof, transferable processes that a new business owner can quickly understand, implement and run with?
Most Common Approaches To Business Valuation
We've gone through the common approaches to valuation, but what should you expect to encounter in the real world when you start conversations with buyers?
Most first phone calls with a private equity professional will zero in on EBITDA and what multiple range to simply slap on top of that, prior to potentially digging deeper and moving towards LOI.
A Rundown of the most popular tools used for business valuation
Leveraging comparable transactions to help you negotiate an acquisition price for your business is a GREAT way to put a $$$ on your baby.
Working with a knowledgeable intermediary in your company niche, one who knows the comparable transactions and buyer valuations intimately, from firsthand experience day-in, day-out is invaluable.
How long is a business broker listing contract? - Selling a business
The process of selling a business can take upwards of six to twelve months, and you should expect to hire a business broker for that timeframe to coordinate buyers and maximize competitive interest.
SELL With Confidence - Exit strategies For Beginners
Selling your business is exciting. Stop worrying and start planning. With the proper preparation, you can seamlessly exit your business with confidence.
How to Properly Sell Your Business
Want to avoid mistakes when selling your business? Read more to discover how to properly sell your business.
What Is a Business Broker? How to Hire the Right One
If you’re asking yourself these questions, you’ve come to the right place. In this article, we tell you all you need to know on how to hire a business broker.
What's a "SPAC" and why are these things so hot right now?
How SPACs Work
Otherwise known as “blank check companies,” these things have become HOT models in 2020 and since the onset of the pandemic.
How it works:
You give me a pile of money
I can go out into the market and spend it on whatever company I like
What’s the catch?
CVBBA Webinar: Deal Origination in a Post-COVID World
In this webinar hosted by CVBBA President Neal Isaacs, Adam Ray (Founder and CEO of BizNexus) shares his thoughts on the state of deal origination in a post-COVID-world.
Bloomberg Interview with Sam Zell on Market Valuations & Post-Virus Economy
Sam Zell’s take on where we are currently in terms of investment & acquisition opportunities as of the beginning of May, 2020. Basically, buyers are looking for discounts and sellers haven’t let go of the pricing expectations that existed just a couple months ago. Until those expectations move closer together, and until the uncertainty clears up, we’re in “wait and see” mode. See the full interview here:
Think Like A Sky Jumper, Merger And Acquisition Advice By John Weber
Those of us in the Mergers & Acquisition industry are trained to stay abreast of breaking news affecting the economy.
5 Business Exit Strategies For Startup Founders
Startup founders are always looking for the next business tycoon to be. Check out these business exit strategies for entrepreneurs and founders.
How to Exit Your Startup When You're Not Going to Be the Next Billion-Dollar Unicorn
Has your business startup not been doing so well? It can happen to anyone. Click here to learn how to exit your startup and move forward if this is the case.
Effect of COVID-19 to Sell Your HVAC Business
Are you considering selling your HVAC Company in the next 12 to 18 months? This post is meant to help you through understanding the current M&A market amid the Coronavirus pandemic.