Category: Finance a Business

Buying a Business in Bankruptcy 3 January 2022: Buying a Business in Bankruptcy “Bankruptcy” is a dreaded word in pretty much all aspects of life. But bankruptcy is also a legal tool that is available to businesses when sudden legal, financial or other catastrophic setbacks – such as the random

Selling a Business: 4 Important Steps 27 December 2021: Selling a Business: 4 Important Steps As I’ve repeatedly mentioned over the past several years of posting to this blog, selling a business is a process – arduous and time-consuming, as I pointed out last week. But it can be far

Selling a Business? 3 Mistakes to Avoid 20 December 2021: Selling a Business: 3 Mistakes to Avoid Selling a business is a time-consuming and arduous process. And it’s particularly challenging if you don’t know what you’re doing – and that refers to pretty much everybody with the exception of trained

Buying a Business: What’s it Worth? 13 December 2021: Buying a Business: What’s it Worth Buying a business requires as much attention to value by the buyer as selling one requires of the seller. When buying a business, with the proper documents, a buyer – or, more realistically, the buyer’s

Selling a Business: The Basics 06 December 2021: Selling a Business/The Basics The last dozen or so posts on this blog have been about some of the specific – some might say “esoteric” – aspects of selling a business. Though all of those aspects are important to consider during the

Selling a Business: Valuing Future Earnings 29 November 2021: Selling a Business/Valuing Future Earnings Last week’s post about using an earn-out when selling a business raised an important question. “How do we estimate the value of a business’ future earnings?” Well, before we can answer that question, we have to

Selling a Business: The Earn Out 22 November 2021: Selling a Business/The Earn Out When selling a business, an earn-out refers to a pricing or financial structure of an acquisition whereby the sellers must “earn” part of the purchase price, usually based on the performance of the business for a

Selling a Business: The Negotiations 15 November 2021: Selling a Business/The Negotiations The negotiation process that is a crucial part of selling a business can seem like a hostile battle for territory – one that will have a winner and a loser. But it shouldn’t be. Both sides are making

Selling a Business: The Financial Structure 8 November 2021: Selling a Business/Financial Structure of the Deal Selling a business is a process. It involves numerous issues, stages and aspects. One that is often left off the table – and one of the most important that a seller needs to be

Selling a Business Twice: PEGs 1 November 2021: Selling a Business/PEGs Part 2 At the end of last week’s post – Selling a Business Today: PEGs – your intrepid reporter mentioned that when targeting PEGS – private equity groups – as potential buyers of the business you’re bringing to market