Entries by Exit Strategies

Is COVID-19 the ultimate cure for one-more-year-itis?

I was talking to a business owner who shared how her teenage kids remember the Great Recession and the financial impact it had on their household. Now they’re seeing their own economic upheaval, in the form of lost summer job (income) opportunities. In good times and lean, money issues have always weighed heavily on her […]

M&A Advisor Tip: Planning for Death or Disability

The Wall Street Journal recently ran an article about CEOs accelerating succession plans and backup management strategies in the wake of COVID-19. It’s a question every owner should be asking (now and always): What happens if you are unable to manage your company? No one likes to think about all the what-if scenarios in life. […]

M&A in Pandemic, Not Panic

Business advisors are digging in right now, trying to figure out how COVID-19 will affect their clients. We’ve been talking with business owners, active buyers, and other advisors around the country. Right now, we know that some M&A deals are getting delayed over routine process points. Certain bank approvals that used to happen in regular […]

Begin with the Knowns and Unknowns

The world feels like it’s turned on its head right now. People are anxious, with good right to be. There’s so much we can’t predict about the weeks and months ahead. When planning your response, begin with what you know and what you don’t know. What we know: We’re in a pandemic, and social distancing […]

The Seven Stages of Selling Your Business

Smart preparation and planning can help you build a business that’s ready to sell when you are. Ideally, you’ll start preparing for sale early in your business life-cycle. The more you know about what buyers want, and what you can expect from the market, the more options you’ll have to exit your business and maximize […]

M&A Advisor Tip: Organize Your Financials

Buyers that pay top dollar usually expect to see clear, well-organized financial statements prepared according to generally accepted accounting principles (GAAP) and reviewed by a reputable CPA firm. If your business has more than $10 million in revenue, you should probably start investing in annual financial statement reviews at least three years prior to selling. […]

Market Pulse: Selling Price vs Asking Price

How much do businesses actually sell for as a percentage of asking price?  The following chart shows the results of this survey question from the latest Market Pulse Survey. Presented by IBBA and M&A Source in Partnership with Pepperdine University The groupings in the chart are selling price ranges for deals, in US dollars.  It […]