How Does an M&A Auction Process Work?
M&A advisors often use an auction process to maximize price and terms for their seller clients. An auction is a type of sale process that produces competitive bidding. While simple in concept and incredibly effective when done properly, auctions are a ton of work and involve lots of strategy and important nuances. Auctions are most […]
How to Build a Sellable Construction Business
With the San Francisco Bay Area building industry booming I am regularly approached by the owners of construction companies with requests to help them to sell their companies. As interest rates are low (but creeping up) and investors are still in the market for solid businesses, some construction company owners with strong financial histories and […]
Inside the Mind of a CEO
Of course it’s in a CEO’s DNA to think big, challenge the status quo, set stretch goals and inspire teams to perform to their full potential. So, why did this recent CNN Business article on How power changes the CEO brain catch my attention? Because my wife pointed it out to me Seriously, according to this […]
Business Sale Planning – How CPA’s Can Help
Exiting right requires early planning and help from a team of advisors that is often formed by a company’s CPA. In our work as M&A brokers, business owners often come to us emotionally ready to sell but unrealistic about the value and condition of their business. And frequently they are out of time or unwilling to […]
One Business Appraiser that All Parties Know and Trust
Jointly retaining a single business valuation expert in disputes over value is becoming increasingly common as owners seek ways to streamline the valuation process, protect their companies and control costs. Naming one appraiser in buy-sell agreements (versus formula and select-3-appraisers-upon-trigger approaches) is also becoming more popular. In this slightly long-winded rant, I will discuss the pros […]
When It’s Time to Sell, Put Your Strengths First
Putting your strengths first will help you sell your business. While this may seem obvious, a surprising number of business owners will either improperly index the strengths of their business or fail to emphasize those strengths adequately. In this article, we will examine five key business strengths that you should focus on when it comes […]
Business Valuations Can Create Value, Not Just Report It!
I recently completed a valuation engagement for two shareholders of a California manufacturing company who were going through a buy-sell transaction. After the sale, the buying shareholder called to tell me how my valuation report gave him the confidence he needed to complete the purchase, take on debt, and revamp the company’s business plan. Besides […]
A Lease Can Make or Break a Business Deal
The transferability of a commercial property lease can have a direct impact on the potential sale of a brick and mortar business enterprise. Most commercial leases contain restrictions on the tenant’s power to freely transfer or assign the interest in a lease. These restrictions are necessary for the protection of the landlord, providing assurance that […]
Why You Should Know the True Value of your Business
The most common time to know the value of your business is when businesses are sold and ownership changes hands. As an owner, you might be retiring from business due to failing health, divorce or other family changes and you want to know the value of your business to get a fair price. Another motive […]
Does Your M&A Advisor have a Stamp of Approval?
When choosing a business broker, M&A advisor, investment banker or transaction intermediary to sell your company it’s wise to consider their professional designations. Having one or more designations from the right professional organization provides validation that the individual is committed to his or her craft and has sufficient experience to manage a complex sale transaction. […]