“Red Flags” in the Sunset
Mar 22, 2016 | CABB Blog
Unlike that poetic title of an old-time standard song, Red Sails in the Sunset, red flags are not a pretty sight. They can cause a deal to crater. Sellers have to learn to recognize situations indicating there might be a problem in their attempt to sell their business. Very, very seldom does a white knight in shining armor riding a white horse gallop up, write a large check and take over the business – no questions asked. And, if he did, it... Continue Reading →
The Confidentiality Myth
16 Mar The Confidentiality Myth
Posted at 02:57h in Uncategorized by bbpadmin
When it comes time to sell the company, a seller’s prime concern is one of confidentiality. Owners are afraid that “if the word gets out” they will lose employees, customers and suppliers. Not to downplay confidentiality, but these incidents seldom happen if the process is properly managed. There is always the chance that a “leak” will occur, but when handled... Continue Reading →
A Selling Memorandum
10 Mar A Selling Memorandum
Posted at 02:54h in Uncategorized by bbpadmin
A sellers memorandum includes all those points one would normally expect to see in any business plan, to wit: an executive summary, a business description, financial requirements, target market niche, identification of top management, an operations review, analysis of strengths and weaknesses, and current financial statements and projections.
Guide to Mergers and... Continue Reading →
Common Seller Questions
How long does it take to sell my business?
It generally takes, on average, between six to nine months to sell most businesses. Keep in mind that an average is just that. Some businesses will take longer to sell, while others will sell in a shorter period of time. The sooner you have all the information needed to begin the marketing process, the shorter the time period should be. It is also important that the business be priced correctly from the... Continue Reading →
Are You Ready to Exit Your Business?
If you’ve read this far, then selling your business has aroused enough curiosity that you are taking the first step. You don’t have to make a commitment at this point; you are just getting informed about what is necessary to successfully sell your business. This section should answer a lot of your questions and help you through the maze of the process itself.
Question 1
The first question almost every seller asks is: “What is my business worth... Continue Reading →
10 Tips for a Successful Sale
17 Feb 10 Tips for a Successful Sale
Posted at 02:47h in Uncategorized by bbpadmin
1.Sellers should find out the loan value of the fixtures, equipment and machinery prior to a sale. Many buyers will count on using it for loan or collateral purposes. No one wants to find out at the last minute that the value of the machinery won’t support the debt needed to put the deal together.
2.Sellers should resolve all litigation and environmental... Continue Reading →
The Term Sheet
11 Feb The Term Sheet
Posted at 02:31h in Uncategorized by bbpadmin
Buyers, sellers, intermediaries and advisors often mention the use of a term sheet prior to the creation of an actual purchase and sale agreement. However, very rarely do you ever hear this document explained. It sounds good but what is it specifically?
Very few books about the M&A process even mention term sheet. Russ Robb’s book Streetwise Selling Your Business defines... Continue Reading →
The Term Sheet
Feb 10, 2016 | CABB Blog
11 Feb The Term Sheet
Buyers, sellers, intermediaries and advisors often mention the use of a term sheet prior to the creation of an actual purchase and sale agreement. However, very rarely do you ever hear this document explained. It sounds good but what is it specifically?
Very few books about the M&A process even mention term sheet. Russ Robb’s book Streetwise Selling Your Business defines term sheet as follows: “A term sheet merely... Continue Reading →
What Makes Your Company Unique?
There are unique attributes of a company that make it more attractive to a possible acquirer and/or more valuable. Certainly, the numbers are important, but potential buyers will also look beyond them. Factors that make your company special or unique can often not only make the difference in a possible sale or merger, but also can dramatically increase value. Review the following to see if any of them apply to your company and if they are... Continue Reading →
Is This the Right Time to Sell?
“Whatever the reason, there should be something other than dollars that motivates you to explore a sale. After all, if it weren’t more valuable to own the business than to sell it, no one would ever buy it.”
Mike Sharp, M&A Today, November 2002
The owner of a successful company is considering selling, thinking now may be a good time. However, he is told by an outside advisor that business is good and that if he holds on to it for several... Continue Reading →