A set of organized, accurate and believable financial statements will have more influence on a buyer than anything you say, do or promise. If you don’t already have a system in place for tracking your company’s finances, begin now to set one up. Many small businesses (and most single proprietorships) Read more
You founded your business with 2 financial objectives in mind – to make enough money so that you and your family could lead a decent lifestyle, and to build something of value that you could eventually sell. Depending on where you are on your career path when you exit Read more
The Choice There were 3 decent offers each presenting a different scenario with different money and structures. Jim, with Rob’s help, considered each offer carefully. Since Jim was only 52, he had a lot of productive years left and he wanted to use the experience that he had garnered building Read more
In PART 1 Jim’s M&A Adviser (Rob) developed and implemented a marketing plan for Jim’s business. In PART 2 you’ll see the results of Rob’s marketing plan. The Offers There were 47 total prospective buyers that received the Confidential Memorandum and 19 of those buyers followed up with questions. After Read more
Jim MacDonald (not his real name) had worked for a large consulting company for several years and he had become a senior member of the company’s computer networking department. In his eleventh year with the firm it made the decision to divest its computer networking operation and focus on software. Read more
When I was growing up my parents were in the hotel business. In fact, at one point, they owned 3 hotels. My dad died when I was quite young and my mother continued operating the hotels. She did well but she soon realized that the 3 hotels were too much Read more
In the lower middle market there are basically two types of companies: Lifestyle Companies and Growth Companies. The major difference is that the owners of Lifestyle Companies take most of the profits out on an on-going basis, while the owners of Growth Companies reinvest the profits to grow the company. The Lifestyle Company A good example of a Lifestyle company is Read more
Most people start a business with dual financial objectives: making money and creating an asset (equity in the business) that they can eventually sell. That’s what you wanted – right? Well, the reality is that over 70% of businesses that go to market don’t sell: meaning they don’t get a return on the Read more
Customers are the lifeblood of any business. Without customers you have no business; but the makeup of your customer base has a big impact on your company’s value. Your Customer Base is made up of several components, some more important than others. The major components of your customer base are: Customer Loyalty Having repeat Read more
You’d like to sell your company in 3 years. You’ve heard that fewer than 25% of companies that go to market actually sell and that makes you nervous. Your retirement money is locked up in the company and if you can’t get it out you can’t retire. That’s one problem Read more