Three Basic Factors of Earnings

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Two businesses for sale could report the same numeric value for "earnings" and yet be far from equal. Three factors of earnings are listed below that tell more about the earnings than just the number. 1. Quality of earnings Quality of earnings measures whether the earnings are padded with a lot … [Read more...]

A Listing Agreement is More than Just a Piece of Paper

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In order to sell one’s business using the services of a business broker, a listing agreement is almost always required. For the owner of the business, signing the agreement legally authorizes the sale of the business. This simple act of signing represents the end of ownership. For some business … [Read more...]

What a Buyer May Really Be Looking At

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Buyers, as part of their due diligence, usually employ accountants to check the numbers and attorneys to both look at legal issues and draft or review documents. Buyers may also bring in other professionals to look at the business’ operations. The prudent buyer is also looking behind the scenes to … [Read more...]

What a Buyer May Really Be Looking At

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Buyers, as part of their due diligence, usually employ accountants to check the numbers and attorneys to both look at legal issues and draft or review documents. Buyers may also bring in other professionals to look at the business’ operations. The prudent buyer is also looking behind the scenes to … [Read more...]

What is the Value of Your Business? It All Depends.

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The initial response to the question in the title really should be: “Why do you want to know the value of your business?” This response is not intended to be flippant, but is a question that really needs to be answered. Does an owner need to know for estate purposes? Does the bank want to know … [Read more...]

Guide to Legal Representation in Middle Market Mergers and Acquisitions

The purpose of this guide is to save you time, money and aggravation. Mergers, acquisitions, finance and similar transactions are not “business as usual,” they are “extraordinary transactions.” Obtaining experienced legal representation appropriate to the transaction can make the difference … [Read more...]

What Do Buyers Really Want to Know?

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Before answering the question, it makes sense to first ask why people want to be in business for themselves. What are their motives? There have been many surveys addressing this question. The words may be different, but the idea behind them and the order in which they are listed are almost always … [Read more...]

The Pre-Sale Business Tune-Up

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Owners are often asked, "do you think you will ever sell your business?" The answer varies from, "when I can get my price" to "never" to "I don't really know" to everything in between. Most sellers may think to themselves when asked this question, "I'll sell when the time is right." Obviously, … [Read more...]

Considering Selling? Some Things to Consider

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Know what your business is worth. Don’t even think about selling until you know what your business should sell for. Are you prepared to lower your price if necessary? Prepare now. There is an often-quoted statement in the business world: “The time to prepare your business to sell is the day you … [Read more...]

Buying or Selling a Business: The External View

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There is the oft-told story about Ray Kroc, the founder of McDonalds. Before he approached the McDonald brothers at their California hamburger restaurant, he spent quite a few days sitting in his car watching the business. Only when he was convinced that the business and the concept worked, did he … [Read more...]

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