There are many reasons one might want to establish the value of a business. If you are selling your business, you likely want to know what your business is worth to establish an asking price. If you are a buyer, you will want to ensure that you are not overpaying for a business you are purchasing. You will also want to understand more … [Read more...]
SBA Loans 101
A common misunderstanding about the SBA loan program is that the SBA makes loans directly to potential business buyers. Instead, the SBA (usually for a small fee) provides a guarantee to potential lenders for the money they lend to small businesses owners. This guarantee protects the lenders interests by promising to pay a portion of the … [Read more...]
Preparing your business for sale
Preparing your business for sale is a complex topic, requiring more space than we can fit in here. It is important to realize that preparing your business for sale starts long before your business is actually listed. For example, as a business owner you may have chosen to minimize your apparent income for tax reasons. However, from the … [Read more...]
What to look for in a business broker
Many business sellers far underestimate the effort and time required to sell their business. The sale of the average small business takes between 7 ½ months to a year to complete. The timescale is largely a result of the extensive packaging and marketing required to sell a business and the complexity of the transaction … [Read more...]
Tips to increase the sale price of your business
To increase the likely sale price of your business, you should enhance the factors that go into determining a business’ sales price. For example, the primary driver of the sale price of a business is what is called the Seller’s Discretionary Earnings (SDE). SDE can be thought of as the net profit of the business adjusted for factors like … [Read more...]