Many times, succession planning involves selling to an employee group or family member. Because this often means seller financing, it’s important to develop your management team so that they can take over even before you step aside to ensure the long term success of the business.
100 percent of businesses end at some point. If you have one or more business partners, start the relationship with a business prenuptial - a buy-sell agreement - as part of your exit strategy for your business. Steve hits some of the important aspects of a buy-sell agreement as a good business strategy.
Wise buyers insist on a detailed due diligence process to make sure that the business is a wise investment. Wise sellers anticipate this and gather this due diligence information prior to listing the business. Work with your attorney or other advisor to anticipate the buyer’s requests and put this package together ahead of time.
Do your best to avoid seller financing when selling your business. Look for ways to help your buyer to close the transaction and give you cash. Steve offers some ideas to help you find those financing opportunities.
Don’t work with the first CPA you talk to! Interview them, using these 13 questions to be sure that their services fit your needs. Having the right business adviser is important to your success!
There is much more to consider than the purchase price when you are buying a business. Steve outlines seven primary questions to ask when buying a business so that you have a full understanding of what you are getting for that purchase price. Whether it is company culture or industry regulation, you will want to understand how considerations such as these will impact your long term success, and subsequently your buying decision. Be sure to talk to your current business advisors for more information on how these questions to ask when buying a business might impact your particular situation, or talk with Steve via email or phone to get his advice.
How much does it cost to start a business? Steve offers five ideas that can help you minimize any start up funding. Use these ideas to find what works best for your strategy, helping make yours one of the most profitable small businesses possible. This video is the first of two videos to address start up funding. Start here to reduce start up costs as much as possible. Then – if necessary – review the second video to help you find sources of funding for your start up.
Look beyond the purchase price and financial track record when you are buying a business. Steve outlines five primary marketing questions to ask when buying a business so that you have a full understanding of the company’s market and its value proposition to its customers. Marketing considerations such as these will impact your long term success, and subsequently your buying decision. Be sure to talk to your current business advisors for more information on how these questions to ask when buying a business might impact your particular situation, or talk with Steve via email or phone to get his advice.
Accurately determining the value of a business is an important part of the business buying process. Explore the three primary ways that Certified Valuation Analysts use to assess the value of a particular business. Whether you are buying a business or selling a business, an accurate valuation takes all three of these methodologies into account, then uses the one most appropriate for your situation Discover how these different approaches can affect the value and subsequently impact the business buying process.
Discover more about this straightforward, common sense approach to help you value a business with the Income approach. Whether you are buying a business or selling a business, this simple explanation of the Income valuation approach will be helpful and will give you something to use as comparison when talking value with brokers or colleagues. Basic, rule-of-thumb lessons such as this one can’t consider all of the small details involved in determining an accurate business value, so don’t make a purchase or sale based only on this. Talk to your current business advisors about how cash flow and cap rate apply to your particular situation, or talk with Steve via email or phone to get his advice.