You Can’t Have it Both Ways

Many business owners I meet point out that they either have expenses that shouldn’t be counted as part of operating the business (owner’s perks) or have a cash component that may be understated, or both.  One would expect a small privately held business to do it’s best to minimize reportable earnings and maximize the dollars they keep after taxes.  But when it comes time to value the...

Helpful Hints for Negotiating a Successful Transaction

Whether you are buying or selling a business, there are a few basic rules to follow when negotiating a successful deal.  Certainly the over all guiding principal should be for both parties to be clear on their objectives and to seek a win-win outcome. What is my bottom line? Good negotiations start with you being clear on your desired outcome.  Take the time to identify your transaction goals...

Bridging Valuation Gaps with Earnout Agreements

Nothing is more frustrating than when a motivated Seller and a sincerely interested Buyer fail to move on a transaction solely because of a valuation gap.  The Buyer usually believes the “high” price is based on overly optimistic financial projections while the Seller feels the Buyer isn’t sufficiently recognizing the potential already built into the operation as a result of the Seller’s...

Should I Offer Seller Financing?

When a business owner finally comes to the decision to sell their business, their first thought inevitably is, “I want X dollars and I want all cash!  This reaction is understandable for once the decision to sell is made, it is natural for one to seek the highest and fastest monetary reward for the years of effort that went into building a successful enterprise. Although perhaps...