Articles

What Is EBITDA and How Does It Impact a Company’s Valuation?

Before your eyes roll up into your head, take a few minutes to read this very important article! EBITDA is used to analyze a company’s operating profitability before non-operating expenses (such as interest and other non-core expenses) and non-cash charges (depreciation and amortization).

Study Points to a “Seller’s Market” Ripe for Acquisition and Identifies the Most Active Industry Sectors

Business valuations are not a commodity. There are many differentiating factors that elevate one firm above another in terms of quality, expertise, certification, and service. A number of elements should be considered in determining which business valuation firm will best service your particular needs and the engagement at hand.

Revenue composition has a major impact on the value of your company

As a business owner, you constantly must make adjustments, face down competition, and manage change with resilience, but are you truly ready to capitalize on what may be the greatest financial transaction of your lifetime, or have you compromised your position with procrastination?  Many entrepreneurs want to be financially rewarded for the years of sweat equity, overcoming challenges, personal sacrifices, investment risks, and the dedication that was required to build their business.  Even if you are not planning to sell or exit now, an opportunity or a need to exit could come and go befor

I have found seller’s remorse to be the most significant emotional barrier that impedes the life-long goal of selling a business.  In handling the sale of over 300 businesses in my career, I have never experienced a situation in which seller remorse was non-existent during what is typically a once-in-a-lifetime event and an entrepreneur’s largest transaction.  For some, it is very manageable and dwarfed by the financial and/or lifestyle rewards.  For others, it can be debilitating and get in the way of an exciting opportunity to experience life’s next chapter.

Having handled the sale of privately held companies for nearly 30 years, I have witnessed the full gamut of emotions experienced by clients during the business sale process.  The majority of business owners are “Type A” personalities, and when undergoing the sale of what is typically considered their most prized asset, emotions can run rampant.  Overreactions to various situations in the process are not uncommon.  This domino effect can ultimately prevent a seller from accurately assessing the core issues at hand and taking an optimistic approach towards negotiations and resolutions.

Industry:

Healthcare Technology including health information systems, health information technology, consulting, and training.

Purpose:

For many companies, 2011 can be categorized as a transitional year. Business owners finally appeared to be settling in and getting comfortable with the “new normal” that has presented itself after years of unpredictability and turmoil resulting from a wavering economy. We have found that the inertia that was taking a strong hold on many business owners began to lift and there were many strategic acquirers in the market, as companies continue to recognize the advantage of growing through acquisition versus the difficult task of doing so organically.

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