ARTICLES

As a Business Valuation and Merger and Acquisition firm, we often receive the following question from entrepreneurial business owners – how do I know what my business is worth? Business owners are commonly looking for an estimate of value for partnership matters, succession planning or to determine if they should consider selling now or sometime…

For most business owners, their company is their most valuable single asset. So why is it that we tend to know the value of our stock portfolios, our homes and even our cars but don’t have a clear realistic understanding about the value of our business? Doesn’t it make sense to know the value of…

When pursuing the sale of your company, it is important to be prepared. Being prepared not only means getting your books and records organized and preparing a quality descriptive executive summary of your company, it also involves educating yourself to properly address the common questions that will inevitably be asked by prospective acquirers.

You’ve thought about it, perhaps spending some sleepless nights debating what to do next with your New York or New Jersey based business. Now you’ve decided it’s time to sell. You have good reasons for the sale—reasons that shouldn’t scare a prospective buyer. So now comes the fun part—or so you think.

Selling a business can be expensive and overwhelming, so owners often balk at the prospect of driving up costs by working with an M&A Advisor. Owners who do, however, almost universally believe their banker added value.

In mergers and acquisitions, a letter of intent or term sheet can clarify expectations and responsibilities to both parties. The primary purpose is to ensure the parties agree to key terms before they utilize significant resources in pursuit of an acquisition. Here’s what to include, and how to structure an acquisition letter of intent.

Selling your business can be equal parts daunting and exciting. You’ll need to address legal, tax, and practical considerations. One of the most daunting legal complexities is deciding how to structure the sale: as a stock or asset sale? Let’s look at the key features of the two sale varieties.

The decision to sell or retain a business is a question pondered by many business owners. Selling a business is a momentous decision and involves critical analysis and contemplation. Although there are a myriad of factors that influence this decision, most of the pertinent issues fall into two primary categories: Financial and Lifestyle Considerations.

Typical high-level concerns for business owners considering the sale of their business include maintaining confidentiality, understanding and obtaining a realistic company valuation, formulating a favorable deal structure, and choosing the right professionals to represent them in the process.

While you may be thinking about selling your business, the timing may not be right for an outright sale. Perhaps the shareholders remain passionate about the business and want to increase its value prior to pursuing a traditional sale.

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

Letter of Intent When selling a company, a Letter of Intent (LOI) is signed by all parties to indicate that the buyer and seller have reached an agreement-in-principal as to the substantive business points of the transaction.

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?

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.

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).

You’re the expert on your business. You’ve seen it through ups and downs and invested years to build your business. It might seem like a no-brainer that you’re the ideal person to sell what you’ve built but there are significant advantages to using a qualified business broker or M&A advisor.