Steps to Selling your Business Part 12. There is much value in doing the preparation work fully and exhausting all questions before contacting prospective buyers. We have good evidence of the benefits: Stillwater has a 95% closing rate when selling businesses such as yours. The industry average currently stands at about 40%. We can credit […]
Steps to Selling your Business Part 11. An experienced M&A Advisor will make the apparent downsides in your business’s story into positive factors in the final sale. Full disclosure is critical because buyers will figure everything out, eventually. Is that one key value driver running at 75 when it should be at 100? Yes, that […]
Steps to Selling your Business Part 10. This is an idea we start to question right away. Why aim for one buyer? There are hypothetical reasons why an informed seller might decide to pursue a single offer, but in our opinion, the good reasons to move in that direction are scarce. Multiple offers are often better than one. […]
Steps to Selling your Business Part 9. My friend said to me, “Doug, do you know what that man did? For 20 years, he stole from his family.” He was right. We all know that the stress and the personal cost of doing business doesn’t end when you go home for the night. Your spouse and […]
Steps to Selling your Business Part 8. Great M&A Advisors consider client’s potential cultural nuances, along with those of prospective buyers. Every culture has its own unique behaviors that can (and do) impact the ways that we conduct business. As a firm, we have observed several uniquely Canadian behaviours when it comes to business. As […]
Steps to Selling your Business Part 7. Lines, not dots. Lines, not dots, means you show investors the trajectory of your company, a line that depicts growth potential. For example, you can show an investor a company with $25 million in revenue as a moment in time, a dot on a graph; however, investors want […]
Steps to Selling your Business Part 6. Speaking with certainty about the future worked out for Abraham. We, though, need to be careful. The truth is that every savvy business owner has had to develop skilled self-promotion to succeed, and that can often translate into spin with their M&A Advisor as well, saying, “This is […]
Steps to Selling your Business Part 5. At its most basic, your Mergers and Acquisitions (M&A) Advisor should ask: how does this business make money? For example, consider a business where billings are based on hours. For that billable hour, their company might pay their staff $60 and bill their clients $200 an hour. Since […]
Steps to Selling your Business Part 4. You have decided. It is time to sell your business. You have answered the critical questions: Who will advise me on the selling of my business? Why am I thinking of selling my business? Why am I thinking of selling now? What am I going to do next? […]
Steps to Selling your Business Part 3. You are giving serious thought to selling your business but are in uncharted territory. In this series, we have already identified several important points to consider before you initiate that process. However, you should think through this process strategically with an expert Mergers and Acquisition (M&A) advisor who […]
Steps to Selling your Business Part 2. Why? Every parent will remember that inquisitive, sometimes annoying question coming from your three-year-old from the backseat of the car “but why?” Seldom is that question met with a straight answer; often it is answered with an eye roll or an “I don’t know sweetie, good question.” It is […]
Thinking about selling your business? You have to choose the right experts to walk through the process with you. In this article we give you a piece of advice that is crucial in choosing your M&A Advisors well.
Last year’s articles have walked through the process of purchasing a company, viewed from the acquirer’s perspective. Before moving on to acquisition integration, let’s pause and look at how to work with your M&A advisor. Role M&A advisors can provide a wide range of services. Understanding the possibilities, and identifying which services are of […]
For many clients, the time between first thinking about selling their business and walking in our door is several years. This interval can be important in maximizing your selling price, if you know how to use it well. The first thing we need to understand when trying to value our own company is that the […]
In today’s M&A environment, an EBITDA multiple is by far the most common methodology employed to value a privately owned business.
Raising money in difficult markets is a current problem. We’ve read in the press about how banks are tightening credit facilities, and there is a cautiousness in the capital markets. A number of companies are now facing the challenge of how to grow their businesses or raise money in the face of this uncertain market.
When valuing a business, most company owners are worried about the income statement. But experienced valuators and investment bankers always consider the balance sheet. The balance sheet sets out critical information about the financial strength and weakness of the company.
The most fundamental question to ask yourself in deciding whether you should sell your business is why?