Category: Value a Business

  Business Valuations and “Fake News” “Fake news”, while not a new phenomenon, gained currency as a catch phase during the United States’ 2016 presidential election campaign. It has since become an oft-repeated charge often leveled by conservatives against liberal and progressive news outlets. But fake news is not limited

  Sell a Family Business: Are the Kids an Option? Many business owners think they’ll be able to pass their business on to their kids. Good idea? Maybe. But maybe not. I’ve written about this before – first here and again here – describing some of the pitfalls of assuming

  Sell a Business for Equity. Huh?!? Sell a business FOR equity?!? As the star of an old sitcom would say, Whatchu talkin’ ’bout, Willis? When you sell a business, you’re supposed to SELL the equity, right? Well, as it happens, many M&A transactions, particularly in the Middle Market, include

   Sell a Business with an Earn-Out. What’s an “earn-out”? Essentially, it is a pricing structure used in mergers and acquisitions where the sellers of a business must “earn” part of the purchase price based on the performance of the business following its acquisition. Many business transfers – especially

  Sell a Business for CASH??? Have you educated your client that to sell a business, some seller financing may be necessary? This is the first of several planned posts on how small and mid-size businesses are financed when purchased. In this post I focus on small, Main Street businesses,

 Business For Sale: Another Disaster I recently read an article in a Michigan newspaper about a business for sale. The article described the challenge a small local business owner is facing trying to sell his business. The story included a reference to a TV feature about this owner’s struggle

 Mergers and Acquisitions: The “People” Aspect M&A – or mergers and acquisitions – can be a complicated process that involves professional advisors and management teams on both sides of the table, reams of paper, columns of figures, bills of sale, financing statements and God-knows-what else. There is a ton

 Estimate of Value vs Reality The following is a true story. The names have been omitted to protect the guilty but the numbers are real; real scary. The front page headline of a recent edition of a newspaper I subscribe to read, “(Business name), Valued at Almost $6M, Sells