Buying a Small Share of a Company

October 24, 2018 blog No Comments

Juan is considering the purchase of a 10% share of a business with a great business plan in a new industry.  The founder will retain 90% ownership.  Juan expects to pay 10% of the full value of the company.   A full-valuation has been done by an independent valuation specialist.  What risk might Juan have? He […]

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Earn outs – the case for most any industry.

December 15, 2017 blog No Comments

Consider this:  If the seller and buyer can not come to terms between one price or another, or a specific industry or company is flagging, or the business clients are tied to the seller, an earn out as a piece of the purchase price.  Here Holly explains the method…   What is an Earn Out […]

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Why Use A Business Broker/Intermediary

November 30, 2017 blog No Comments

This list was created as noted at the bottom and adapted to fit business intermediaries as well (see green for adaptations). The top reasons sellers hire brokers/intermediaries are these: Brokers/intermediaries know how to sell businesses; most sellers don’t 24% Seller doesn’t want to be distracted from running business 16% Confidentiality preservation and knowledge of what/when […]

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Some Nuances to Cash Flows

November 15, 2017 blog No Comments

One of the routine evaluations of business owner’s (and their consultants) relative to value to sell is cash flow. In fact it is a heart of the matter.  Often the simple cash flow example is stated this way: Cash flow to a single owner is Bottom line of the tax return or related profit and […]

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Do you want to develop more business?

November 1, 2017 blog No Comments

One of the great ways of expanding business is through tuck ins. A tuck in is the process of one business buying another business in the same or related field and merely tucking it in, much as the tail ends of the sheet you tuck into the end of your bed to have a full […]

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Excess Inventory

April 29, 2017 blog No Comments

Recently posted a message about excess inventory – how does it influence the value of the business for sale.  This is what they said and I agree: Some of you have asked in response to our #1 FAQ about inventory, how is “excess inventory” dealt with? As mentioned in our previous post, PeerComps “values” […]

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Financing a Biz Purchase – Some Methods

April 27, 2017 blog No Comments

Obviously the quickest and easiest financing of a business purchase is to reach into the pocket and draw out the cash.  Really.  That is easy.  Most can’t. Here are some other ways with many variations and combinations: Seller financing – routinely with no less than 30% down and terms of up to 10 years with […]

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Business Sorrows

March 31, 2017 blog No Comments

I am often asked ‘is it better to start a business or buy a business?’  The answer is ‘it depends.’  It seems there are two entrepreneurial types – those that would only start a business and those who would only buy a business. There is risk and anxiety in both.  They both cost money, perhaps […]

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Typical Seller’s Process

November 28, 2016 blog No Comments

Everything we say is routine, turns out to have its own twists and turns.  This is true with selling a small business as well.  In this case, a small business is one that has perhaps $3,000,000 in annual sales.  It may not be so small to operate and certainly requires the ingenuity of the owner. […]

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Piercing the Veil

July 14, 2016 blog No Comments

Sylvia had been going great with her syndicated radio show. She had advertisers, 100 radio stations carried it. All was well until the one advertiser filed bankruptcy. Sylvia had been on top of it and had her business manager, just 45 days prior to the filing, collect $50,000 of the $100,000 then owed. She really […]

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