A middle market business owner who chooses to represent himself in the sale of his own business will never know the value of the offer never received, or the deal terms that never were negotiated or the financial sum he left on the table. Why do owners shun M&A Advisor or engage inadequate inexperienced professional […]
What is My Business Worth?
Are you preparing for a business sale? A key question you may ask is “what is my business worth“? The answer, which you probably don’t want to hear is “it depends”! Several factors influence the price of a business. “Environmental” Influences “Environmental” influences impacting business values are of both an internal and external nature. External environment includes the type of buyer, […]
Preparing for a Business Sale – Key Elements
Are you preparing for a business sale? Strategic buyers are sitting with a record amount of cash on their balance sheets. As organic growth has been difficult to achieve, strategic buyers have been very active in the acquisition market. Private equity buyers who have raised many millions of dollars are seeking acquisitions. They are the major players […]
Normalised EBITDA to Increase Business Sale Value
Preparing Normalised EBITDA financials is a process undertaken in preparation of a business sale to gain a better understanding of post sale cash flows. This is done by excluding abnormal, non-recurring and one-off events and adding back costs which would be incurred in a “business as usual”. Items to be “normalised” or “adjusted” can often be contentious and a conservative approach […]
The Art of Saying “NO”
Selling is easy. After all, sales simply come from building a good relationship with a client, giving the client what they want and watching the sales role in over time. The customer is always right so bend over backwards and give them what they want, right? Changing habits Unfortunately it is not so simple. The concept […]
EBITDA Multiples Mislead
EBITDA Multiples mislead in valuing a business! Although it is a quick and easy way to view and understand the value of a business, caution must be exercised. When determining the value of a company, close consideration should be taken when using either EBIT or EBITDA (earnings before interest and tax, depreciation and amortisation) multiples and the type of […]
Understanding business value from the Buyer’s point of view
Whilst deal price may understandably rank highly with the Seller, business value from the Buyer’s point of view will place intangibles and future opportunity firmly at the top of his list. As Albert Einstein once said, “Not everything that can be counted counts; and not everything that counts can be counted.” To optimise a deal, the Seller needs […]
How a Higher Price can be Achieved when Selling Your Business
Multiple Bidders In a recent Deloitte survey of executives the most common reasons selected as to how a higher price can be achieved when selling your business was to have multiple competing bidders (44%). Other factors include strength of the management team, their preparation and ability to convey the company goals and objectives (40%). No surprises […]