Blog adapted from True North Mergers and Acquisitions An Important aspect of growing a successful business is creating transferable value. Transferable value is what your business is worth to someone else without you at the helm. Whether you plan to retire or die at your desk, transferable value is what increases business value. To create transferable...
So, you've calculated the TRUE EARNING POWER of your business. Now What? We apply a "multiple" to it. One of the most common methods of valuing privately held businesses of all sizes is using valuation multiples. But where do we find these multiples? First, let me tell you where NOT to find these multiples. DON'T...
In light of Donald Trump winning the election, here are some critical insights for small businesses, with a focus on why selling your business now might be more advantageous than waiting. Why Consider Selling Now? Current Economic Optimism The stock market immediately reacted positively to Trump's election, including some record highs. This optimism could translate...
Prepare ahead of time, close faster. Every business transaction is different, but on average, the exit process takes 6-9 months. Here are 7 important variables that can affect a sale timeline: Deal Value - Highter valued businesses require a longer process. Revenue - Recession-proof and recurring revenue. Owner Centricity - Less owner involvement in day-to-day...
Business Sales Surge in Q3 The third quarter saw robust activity in business acquisitions, with sale prices climbing in key sectors. Despite variations in transaction volume, buyers are paying premium prices, creating a seller-friendly market. Sector Highlights: Services: 16% increase in median sale price 18% revenue jump, 21% cash flow growthCouriers and auto repair shops...
Election, Economy, and Small Business Confidence As we approach the Presidential election and interest rates decline, small business owners are feeling more optimistic about selling. Recent data from the Q3 2024 BizBuySell insight report shows that both seller and buyer confidence are on the rise. Why Now is the Time to Plan Your Exit: Seller...
By: Bob Harris, M&A Advisor, M&AMI, Industry Expert I have advised many lumberyard and building center owners when they are ready to exit their businesses and am often asked to provide an opinion of value. The value of one business over the other can be far different even when they are similar in revenue size. ...
As we approach the end of 2024, it's time to consider your business's future. The market is becoming more attractive for sellers. Now is not the time for uncertainty. Why Start Now? Exit planning isn't just about selling; it's about maximizing your business's value and ensuring a smooth transition. By starting early, you: Increase your...
The "Dismal D's" often force owners to unexpectedly exit their businesses. What exactly are we talking about? See below. DeathDivorceDissolutionDeclining Sales When owners wait too long to exit, they may be faced with leaving money on the table, settling for 1 buyer, or not being able to exit at all. All owners will eventually exit;...
