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For a buyer, the up front investigation of a business may seem rather simple but what then?  What if I want to buy the business. First, gather round you professionals, an attorney to review documents and a CPA to assist with assessing the organization. In my practice and many main street business-for-sale transactions using an intermediary/broker, the process often includes these steps and features.  These are typical but, then, no [...]

Frankly, it is almost always a surprise, the value of a business.  Owners wanting to sell are often thinking the sale price will fully fund their retirement, the only requirement to continue to live as they have. Usually this is just not true. Note: Cash flow to owner is sometimes called discretionary earnings.  There are several models for this calculation, all leading to the same end.  It is good to [...]

This list is especially intended for owners of newly purchased businesses.  It could also serve as a check list for any owner or start up entrepreneur. It is a non-inclusive list as each business, business environment has its own nuances.  Often when a business is purchased a number of these are in place and easily transitioned.  It is usually better to not change systems for a period of time until [...]

How Can a Solo-preneur or Other Smaller Business Owner Be Appealing for Acquisition? While this example is written about two mental health providers, it could be about a construction company, web designer, etc. Fran and Frank had two different operational models and two very different prospects for sale. Fran a mental health provider had completed her training and joined a large health system.  After five years she was ready to [...]

George was hired as the new operations director, replacing a very successful director of ten years.  George was perfect.  He had been found in a national search, in part conducted via mega, industry specific job websites.  His experience with similar companies demonstrated he would be a good fit.  He was hired and then… It was two years later when the owner, Gretchen, a woman busy with business-sales travel became suspicious.  [...]

From Inc magazine, online  http://www.inc.com/john-warrillow/when-growth-decreases-your-companys-value.html Please note, as you read this article, understand that the method of valuing a business can vary while the price remains the same or similar.  In my work at Dakin Business Group, we most routinely speak of discretionary earnings/cash flow to owner, not pre-tax profit as is mentioned herein. When Growth Decreases Your Company's Value By John Warrillow Top-line growth is great for your ego. [...]

Reprinted from Divestopedia The #1 Reason Business Sellers Leave Chips on the Table By Scott Yoder, October 16, 2013 See Scott's profile in our advisor directory. Takeaway: We asked seasoned exit planning professionals how to avoid leaving wealth behind when selling a company. Their answers educated and inspired us. Source: flickr/Muffet I recently attended the Exit Planning Institute (EPI) annual conference. Besides the great presentations and the networking, I was [...]

I went to visit with a business owner the other day and she mentioned that she was going to start ‘tucking in.’  What exactly was tucking in?  Does she have young ones or a sick parent at home?  What I learned… In this case the business was a printing company.  The printing industry does have some issues these days.  They are competing with non-print communication of teleconferences and e-commerce, as [...]

George has a great business, developed over 20 years.  He has a brand that consistently generates new and repeat business.  Now it is time to retire and a buyer for the business has been found but due diligence is not going well.  George used a bookkeeper and an accountant but himself is not very knowledgeable and the professionals perhaps not as excellent as they might be.  Plus, there were those [...]

Mary was working away at the retail store she owned with partner, Geri.  Geri typically did not come into the store as her role included buying and administering backroom responsibilities.  But, there she was announcing her desire to be bought out.  It was a total shock to Mary.  Certainly during their 10 year relationship there had been issues but they seemed to find ways to work through each problem. Geri [...]

It is not unusual for a new business owner to call and say, ‘Way too much, I want out.’  Often the entrepreneur did not fully realize the commitment to time, energy, and resources required by a new business, whether newly purchased or newly opened. These are three tips for a new business owner: 1)   Assess carefully up front not only the purchase price but also the working capital.  My practice [...]