The following is an excerpt from https://www.entrepreneur.com/article/295132 . For middle-market company owners and executives, the last thing they might be thinking about during the growth phase of their businesses is planning for an eventual sale. However, a successful “exit” takes years of preparation, and only those owners who take the right steps along the way will [...]
The following is an excerpt from https://www.forbes.com/sites/insights-whittiertrust/2019/07/08/planning-your-exit-five-questions-on-optimizing-results/#3888c2ff7fa3 . Forbes Insights research shows that over half of today’s high-net-worth investors generated or obtained the lion’s share of their wealth either exclusively (22%) or to some degree (31%) through a family-run business. This highlights the essential art of exit planning—prepping the family and the business for its future [...]
The following is an excerpt from https://www.divestopedia.com/avoiding-the-biggest-deal-killer-time/2/4645 . When selling a business, time is not your friend. Time is the enemy of all deals. In fact, "time wounds all deals" is an expression that can be associated with a number of different industries, but is especially relevant to business acquisitions. So, the key to a successful [...]
The following is an excerpt from https://www.axial.net/ . Selling a company is a long and complex process. Preparing for a sales process takes at least 12 months, and then the actual process itself can take another 12 months. If you think of selling your business as something similar to a very long multi-year enterprise sales cycle, [...]
The following is an excerpt from https://www.axial.net/ . As a seller, it can be easy to fixate on the numbers. “My business is worth X. I’m going to get Y cash at close.” These figures will represent some of the largest you’ve seen in your lifetime. The focus on valuation is understandable, but remember that structure and terms [...]
While financial performance is important to business valuation, financials are only part of the equation of value. The flip side of financial numbers is the multiplier or discount rate. Very simply put, Value = Earnings x Multiplier. Simply, what is a suitable financial multiplier, 4x’s, 6x’s or 8x’s? The choice of a multiplier is driven [...]
Today on the show, Calvin Hughes of Paladin CMS Advisors breaks down mergers and acquisitions trends for 2017 and the overall health of the North American M&A market.
Exploring an exit strategy is a process that no CEO should take lightly. More often than not, the sale of a business is the most important transaction an owner will ever complete.