by Neal Isaacs, MBA, CBI, CM&AP | Business Valuation, Exit Planning, Grow a Business |
Buying and selling a business is a challenging and calculated process that is influenced greatly by market conditions. On one hand, business buyers must consider the historical performance of the business they intend to purchase and gauge that against financing options and other acquisition challenges to make a judgment call on how the business would perform post-acquisition. Business owners, on the other hand, must consider the money they are making now, and weigh that against a pay out and their need or desire to work less.
by Holly Magister, CPA, CFP® | Business Valuation, Sell a Business, Selling a Business Questions |
When it comes to the sale of a business, there are a number of costs – both expected and unplanned – all business owners should understand before they agree to sell their business. A few of our Featured Advisors have weighed in, offering their expertise and perspective to explain the costs – from business broker fees and legal costs to hidden fees – as they relate to selling a business.
by Holly Magister, CPA, CFP® | Business Capital, Exit Planning, Sell a Business |
The Small Business Administration (SBA) issued a Procedural Notice on October 2, 2020 which offers business owners and lenders guidance on how Paycheck Protection Program (PPP) Loans are to be handled when a business has a change in ownership.
This post summarizes the notice and includes an Infographic to assist business owners. It includes the following topic:
When does a Business Sale Require the SBA’s Approval
Does a Business Sale Require the PPP Lender’s Approval or Notification
Required Steps Pre and Post-Closing for PPP Borrowers
SBA Timeframe to Approve a Sale or Merger when a PPP Loan Transfers
Does the EIDL Grant Impose Additional Steps When Selling a Business
by Holly Magister, CPA, CFP® | Sell a Business |
If you’re considering the sale of your business, or possibly the acquisition of another competing business, it’s important to understand the selling/buying process.
An often overlooked and important first step during the process of buying or selling a business involves the negotiation of certain terms the buyer and seller will ultimately agree to at the closing table once the due diligence phase of the process is completed.
If either party ignores the importance of the initial terms’ negotiations, they can often end up with a bad deal or no deal at all.
by Neal Isaacs, MBA, CBI, CM&AP | Business Valuation, Exit Planning, Grow a Business, Sell a Business |
Doing deals can be expensive. A lot of entrepreneurs want to save money by not hiring an advisor or they don’t know when they should make the investment on an advisor. It’s important to understand the roles of the broker and other advisors, especially legal counsel, and to know when to bring in a professional. Here are some milestones in a deal, and how to know when to hire a business advisor.
by Holly Magister, CPA, CFP® | Exit Planning, Sell a Business, Selling a Business Questions |
For the business owner who desires a great outcome, including the business owner’s family in the exit planning process, as well as the decision to sell, is vital.
by Neal Isaacs, MBA, CBI, CM&AP | Grow a Business, Sell a Business |
Have a Question? Ask your question below and one of our Advisors will answer. As a business broker in North Carolina, I’m focused on seller representation. But I need great buyers to match with my great seller’s opportunities. In our office, we receive a lot of... 
by Holly Magister, CPA, CFP® | Business Valuation, Grow a Business, Trepopedia |
v Have a Question? Add it to the bottom of this post! For many entrepreneurs, launching a new business often means walking a fine line between pursuing earnings growth and growing the top-line revenue. A business can’t be successful in the long-term without earning a... 
by Holly Magister, CPA, CFP® | Business Valuation, Exit Planning, Grow a Business, Trepopedia |
Contribution margin is an important method of not only understanding how profitable a business is, but also how its products and services contribute to the bottom line. It’s important to understand that contribution margin is different from profit margin, since profit... 
by Holly Magister, CPA, CFP® | Business Capital, Grow a Business, Trepopedia |
Without cash flow, a business cannot pay its employees, make debt payments, or invest in its future growth – making cash flow a critical focal point in every business, regardless of size. Yet searching for the correct small business financing can be overwhelming,... 
by Holly Magister, CPA, CFP® | Business Capital, Grow a Business |
Sufficient cash, otherwise known as business capital, is necessary for any business to pay vendors and employees on time and to invest in real and intangible assets that enable growth. That’s why, as a business owner, it’s critical to understand what business... 
by Holly Magister, CPA, CFP® | Sell a Business, Trepopedia |
Have a Question? Ask your question below and one of our Advisors will answer. What is Invested Capital? MVIC (Market Value of Invested Capital) is the amount of money raised by issuing securities to shareholders and bondholders, and typically includes total debt and... 
by Holly Magister, CPA, CFP® | Business Capital, Grow a Business, Trepopedia |
Once you’ve successfully assessed your financial needs for a business loan, you’ll want to follow these guidelines to determine what, if any capital funding you may need, and the best type of business loan for your business. What are the best reasons for a small... 
by Holly Magister, CPA, CFP® | Grow a Business, Trepopedia |
The American Stock Exchange (AMEX) is the third-largest stock exchange by trading volume in the United States. AMEX was acquired by the New York Stock Exchange (NYSE) Euronext in 2008, at which time its name was changed to NYSE Alternext US. In 2009 it became the NYSE... 
by Holly Magister, CPA, CFP® | Grow a Business, Trepopedia |
The payback period for buying a business is defined as the amount of time it takes to recuperate an investment, or to reach a break even point. Generally, the payback period is expressed in years. All other factors held equal, a shorter payback period is more... ![How to Protect Your Business Intellectual Property [Infographic]](https://b226520.smushcdn.com/226520/wp-content/uploads/2016/12/Screen-Shot-2016-12-01-at-2.34.09-PM.png?lossy=1&strip=1&webp=1)
by Holly Magister, CPA, CFP® | Business Entities, Grow a Business, Start a Business |
Protect Business Intellectual Property when you start your business and as you are growing your business! Learn about DBAs, patents, trademarks, copyrights and more in our business intellectual property infographic. Protecting the IP you develop in your business is... 
by Holly Magister, CPA, CFP® | Business Valuation, Grow a Business, Sell a Business, Trepopedia |
The term business value is a broad term that refers to any form of business valuation which determines the financial health and potential of a company. While a purchase or selling price is simply an amount that may be asked to be paid for a 100% ownership of a given... 
by Holly Magister, CPA, CFP® | Business Valuation, Grow a Business, Trepopedia |
Capitalization Rate, more commonly referred to as Cap Rate, is the rate of return on a real estate investment based on the income the property is expected to generate. In other words, the Capitalization Rate is used to estimate an investor’s likely return on... 
by Holly Magister, CPA, CFP® | Business Valuation, Sell a Business, Trepopedia |
Furniture, fixtures, and equipment (or FF&E) is an accounting term used in the process of valuing, liquidating, or selling a company or building. FF&E refers to any fixture, piece of furniture, or piece of equipment that is moveable and is not permanently... 
by Holly Magister, CPA, CFP® | Sell a Business, Trepopedia |
v Have a Question? Add it to the bottom of this post! Enterprise Value, also sometimes called “EV,” is a measure of a company’s total business value. EV is the theoretical price for a company if it were to be bought, and because EV accounts for a company’s debt and... 
by Holly Magister, CPA, CFP® | Grow a Business, Sell a Business, Trepopedia |
The term “dry powder” is financial slang and refers to a company’s or investor’s highly liquid securities which are kept on hand to finance future obligations, purchase assets, or invest in opportunities. Such capital also may be kept on hand to provide emergency... 
by Holly Magister, CPA, CFP® | Business Valuation, Grow a Business, Sell a Business, Trepopedia |
The investment banking market is made up of two sides – the buy-side, and the sell-side, both of which are responsible for researching and assessing stocks and other investments. The buy-side refers to advising institutions concerned with buying investment services.... 
by Holly Magister, CPA, CFP® | Business Valuation, Sell a Business, Trepopedia |
Middle market or “mid-market” companies or firms are businesses that typically earn between $5 million and $1 billion in yearly revenue. This group of businesses makes up the middle third of the U.S. economy’s revenue and employs 25% of its labor force, with large and... 
by Holly Magister, CPA, CFP® | Grow a Business, Sell a Business, Trepopedia |
Non-Solicitation Agreements (NSAs) are made by two parties to protect one party from a potential loss of income or assets. This type of agreement is warranted and often made when one party is about to become aware of certain important relationships the other party... 
by Holly Magister, CPA, CFP® | Grow a Business, Sell a Business, Trepopedia |
In business, the term exclusivity refers to a party’s sole rights with regard to a certain business activity. This may include business relationships, pricing, products, or sales. Another application of this term in the business world involves relationships between... 
by Holly Magister, CPA, CFP® | Grow a Business, Start a Business |
Have a Question? Ask your question below and one of our Advisors will answer. Business owners generally want to protect their personal assets from claims, lawsuits and certain other business liabilities associated with their business. That’s why when a serial... 
by Holly Magister, CPA, CFP® | Sell a Business, Trepopedia |
The valuation multiple formulas available to compute the value of a business for sale are numerous and can be confusing to many small business owners. In fact, many professionals can be similarly confused by the various multiple formulas currently in use.
by Julie Kline, Attorney | Sell a Business |
So you’ve decided to sell your business, but what structure is right for the transaction? Buyers and sellers often prefer different structures due to various factors which change based on the structure and which have different impacts on the parties. Generally there are three (3) categories of factors that drive the eventual structure of a deal: (1) business issues, (2) assignments and consents, and (3) tax issues.
by Julie Kline, Attorney | Sell a Business, Trepopedia |
Term Sheets or Letters of Intent (LOIs) are commonly used in the buying or selling of businesses. The purpose of LOIs are to state clearly the principal terms that the parties have agreed to as part of the deal and to represent the intent of the parties to pursue the contemplated transaction.
by Chris George | Business Capital, Grow a Business |
Most individuals who consider themselves entrepreneurs believe they must start their own business to earn the title. However, what some do not realize is that the entrepreneurial spirit can be fulfilled in a variety of ways, not the least of which is purchasing an existing business. The following is a list of advantages for buying a business over starting one from scratch.
by Chris George | Grow a Business |
People often overlook the attitude of the buyer and how greatly it can affect the outcome of the deal. Confidence is key.
by Matt Harnett, CAIA | Business Capital, Grow a Business |
As markets recover post-recession, business owners are presented with growth opportunities. However, a business owner may not have access to the capital needed to execute on a growth strategy. Where does a business owner turn?
by The Exit Promise Contributors | Business Capital, Grow a Business |
Many entrepreneurs faced with the demands on cash of a growing business are tempted to sell equity to outside investors, or perhaps give away stock to retain a valuable employee. Diluting your stake in this way may solve the immediate problem, but it can have unforeseen consequences when the business eventually is sold. Stockholders’ personal circumstances evolve in different ways over the lifetime of a company, and whatever the original intention everyone may not be on the same page when you are ready to sell.
by Holly Magister, CPA, CFP® | Exit Planning, Sell a Business |
You have endured multiple meetings with potential buyers. You’ve written dozens of emails and suffered through several rounds of negotiations to secure the best price and deal structure. At last you have decided on the offer to accept. That’s the worst of it over then? Think again – you have yet to experience the joys of due diligence and sale contract negotiation.
by Greg Younts, CMAI | Business Valuation, Exit Planning, Sell a Business |
A business plan is critical to the success of any business. And, if the plan is frequently reviewed and updated, it becomes increasingly valuable over time. It provides valuable historical information to help a business owner make decisions on the future direction of the company.
by Holly Magister, CPA, CFP® | Sell a Business, Trepopedia |
When the Letter of Intent (LOI) expiration date and time is defined, the buyer is putting the seller on notice that he or she must either agree to the terms defined in the letter or lose the opportunity to sell the business to the buyer authoring the LOI.
by Kathleen Kuznicki, Patent Attorney | Grow a Business, Start a Business, Trepopedia |
A copyright protects the particular ways by which people expressed themselves. A copyright gives an owner the exclusive legal right to reproduce, publish, sell, or distribute an original creative work.
by The Exit Promise Contributors | Grow a Business, Sell a Business |
Your worst nightmare comes true! You get an email on Friday afternoon from your largest customer indicating that they are changing suppliers for “strategic reasons.” They represent 20% of your sales revenue and 35% of your profits.
by Michael Silverman, Attorney | Sell a Business |
If you have the opportunity to buy or sell a business, negotiating the terms of a letter of intent (an “LOI”) is one of the first and most critical steps in the process of completing the transaction. A well-written letter of intent provides a valuable foundation for a potential transaction as it captures the parties’ intentions with regard to the structure, timing and material terms of the transaction. An LOI often imposes significant obligations on each of the parties, and consequently is typically the product of fairly intense negotiations between the parties.
by | Grow a Business, Sell a Business |
The various types of valuation reports produced by a business appraiser can be confusing to an entrepreneur, especially when the appraiser belongs to more than one valuation association. Under most appraisal standards, a business appraiser can produce two types of reports: a detailed appraisal report or a calculation report.
by Jennifer M. Novotny, Attorney | Sell a Business |
Throughout the lifecycle of a business, it is important for a business owner to remain focused on increasing the profitability, competitive advantage and market reach of the business. An entrepreneur typically accomplishes these objectives by (i) reinvesting the profits of the business to increase its workforce, customer base and cash flow and (ii) using business profits (along with other financing) to acquire competing businesses. Such business acquisitions typically serve two purposes by eliminating competitors and increasing the growth rate, product and service offerings, and market share of a business.
by Holly Magister, CPA, CFP® | Business Capital, Grow a Business |
Bankers and Entrepreneurs rarely see eye-to-eye. Recently, my observation of this unfortunate reality caused me to chuckle as I sat with one of my clients and her business banker. What made me laugh was how two extremely accomplished individuals could define the term “special assets” so differently.
by Holly Magister, CPA, CFP® | Start a Business |
It never ceases to amaze entrepreneurs how certain seemingly simple decisions, made during the early years of their business startup, can become fatal errors down the road. After meeting with many business owners across a broad spectrum of industries it’s common to find them enduring the consequences of the same, or similar, errors over and over again.
