Valuing a Business in the Time of COVID-19
Business owners and investors alike are asking themselves the same questions in the current COVID-19 environment. Are there opportunities in downturns? If so, when do you know when buy and sell? What are my illiquid assets worth? A former boss and one of the best bond traders I’ve ever met frequently used a popular trader’s […]
A Controlled Private Short Sale using UCC Article 9: a Winning Alternative to Bankruptcy
As a business sale advisor, I help business owners obtain the best price and terms available in the market during a sale process. I sometimes encounter situations where the owner would like to sell the business, but the business is in a distressed position with the following characteristics: the fair market value of a business […]
Can you sell a distressed business?
We’ve been getting this question from more business owners over the last few weeks. As with many important questions, the answer is, “it depends”. Financial distress occurs when a firm can’t generate enough profit to meet its immediate or long-term financial obligations. If your business is consistently accumulating debt, has unseasonable and sustained increase to […]
COVID-19 Exit Planning Insight: Keep a Journal
There’s no shortage of information out there right now on how company owners and CEO’s are responding to COVID-19. [By now, leaders have taken steps to survive and fight another day. Most now understand what business will look like for them until restrictions are lifted, and they’re formulating plans to thrive again post-pandemic.] With few […]
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. […]
Valuing a Business in Bankruptcy
According to data collected by the U.S. Bankruptcy Courts, business bankruptcies declined from 60,750 (or 4% of total filings) in 2009, just after the 2008 financial meltdown to approximately 22,750 in 2019 (or approximately 3%).[1] With overwhelming challenges ahead as a result of the Coronavirus Pandemic, the question is not if these filings will go […]
COVID-19 M&A Update: Survival Mode
As of 4/6/2020 The fact is, no one knows when this public health crisis will be resolved or when commerce will return to normal. The fact is, most businesses are struggling. They have scaled back or stopped operating. Leaders have taken quick decisive action to stem losses and preserve cash. They are taking advantage of […]
The Value of a Sell-Side M&A Advisor to Buyers
Strategic and financial buyers often tell me how they appreciate the value that experienced, ethical and professional sell-side M&A advisors (a.k.a. business intermediaries, investment bankers, or business brokers) bring to a deal; even when that advisor represents the seller! As a buyer, you can expect a sell-side M&A advisor to help by compiling, analyzing and […]
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 […]