We have found that there is no typical business buyer. There are some key issues most qualified buyers consider. We find that buyers are generally risk adverse. One way they manage risk is to focus on well run businesses. One with clean financial records, long track record, great reputation and qualified staff in place. They …
The BizBuySell Quarterly Insight Report shows a 14% increase in 2021 against COVID-19 fallout, hiring challenges and supply chain disruptions. They say after modest gains to start the year, transaction accelerated 28% in the fourth quarter, eclipsing the pre-pandemic levels of Q4 2019. The inventory of quality businesses for sale is not adequate to meet …
U.S. Business for Sale Transactions Bouncing Back Read More »
Creating a plan to exit your business can be difficult without knowing the market value of your business. The market value of the business seldom correlates with its balance sheet. A most likely selling price valuation will determine how much money is available for the owner’s salary/benefit, capital investments and debt service. Business owners are …
One of the first phrases Business Buyers and Sellers run across are SDE and the second is likely Cash Flow. SDE stands for Seller’s Discretional Earnings and Cash Flow in the world of business sales is essentially another way to describe SDE. This is often the most important metric for purchasing a business with borrowed …
Most business owners are aware of their Business Book Value. Many also tract metrics from their balance sheet to keep a finger on the pulse of the business. The Market Value of a business includes some balance sheet items but is based on a process called recasting the financials or normalizing the financials. You may …
Average Selling Price / Days on the Market – Statistics Regarding Selling a Business – If you’re a business owner considering selling your business, it’s helpful to know some basic statistics regarding averages for selling a business. The following information was gleaned utilizing data from a Pratt’s Stats database, based on transactions of private companies by private …
Business buyers come in all varieties. Some want to talk about the business they are going to buy or they are looking at. Often these “buyers” never get beyond the talking phase. Others have a clearly defined boxes that they check off. Of course, there are the ones in-between that will know what they want …
When buying a business part of the process is managing risk. One way to manage risk is to uncover everything you can about the business your are considering acquiring. The best way to start is to either sit down with the owner or his/her agent and interview them. The interview would consist of mostly questions …
A bright spot during the Covid-19 pandemic has been the tremendous support SBA has shown small businesses. The SBA currently is waiving the SBA guarantee fee on loans up to the end of September. This is a huge bonus for those entrepreneurs looking to purchase, refinance, or expand their business. Typically a SBA guarantee fee can …
If you are thinking about selling your business, first put yourself in the shoes of a buyer. Here are a few things that might be important to you as a buyer: A buyer will want to be sure that what they are investing in will grow and blossom with their help or at the very …
What Do Business Buyers Look for When Buying a Business? Read More »