• Should I Consider an ESOP?

    Posted by: Tawnya

    There are various strategies business owners can employ to exit from their businesses or to simply provide liquidity for the owners when they want to remain in control of their companies. If you are a business owner, an employee stock ownership plan (ESOP) may be a useful tool to achieve your objectives.

    Read full post »

  • Strategies to Improve Your Future by Increasing Your Business Value

    Posted by: Tawnya

    It is a well established principle that as your company increases in value, it opens up more opportunities and more favorable exit paths for you. Increasing the value of your business is within your control and unlocking that potential can dramatically improve your post-business future.

    Read full post »

  • How Do I Choose the Right Internal Successor?

    Posted by: Tawnya

    There are many factors that will impact the success or lack of success of an internal successor. Whether your objective is to transfer or sell your business to your child or children, or to a key employee or key employee group, there are several questions you need to seriously consider.

    Read full post »

  • How to Avoid Typical Deal Breakers in Third Party Sales

    Posted by: Tawnya

    There are many obstacles a business owner encounters when selling their business to a third party. As a general rule, most businesses are not ready for immediate marketing and sale when the business owner decides s/he is ready to sell. Many obstacles and deal breakers can be eliminated by engaging in exit planning or the pre-sale planning process before putting the business on the market.

    Read full post »

  • Seller's Discretionary Earnings – What is it and How is it Calculated?

    Posted by: Tawnya

    One of the basic financial figures used in valuing businesses is this thing called EBITDA which stands for Earnings Before Interest, Taxes, Depreciation and Amortization. When it comes to valuing small businesses, however, you will often find that the value has really been based on something called SDE which is Seller’s Discretionary Earnings. So what’s the different between the two?

    Read full post »

  • Large Contracts - Friend or Foe?

    Posted by: Tawnya

    What happens when the business owner is trying to sell the business and the large contract has run its course? It can be difficult to determine the value of a business when 60% of the revenue was derived from a single client contract and that contract is out for rebid.

    Read full post »

  • Three Costly Mistakes to Avoid when Buying a Business

    Posted by: Tawnya

    Buying a business is a complex process. It is important to stay alert and focused throughout the transaction. Avoid these three costly mistakes when buying a business.

    Read full post »

  • How and When to Tell Your Employees about the Business Sale

    Posted by: Tawnya

    Communication at the right time and in the proper manner is a critical component of a successful transaction. There are some business owners that decide to tell their employees when they originally put the business on the market for sale. This can be beneficial or detrimental.

    Read full post »

  • How to Creatively Finance Your Business Acquisition

    Posted by: Tawnya

    When you are looking to acquire an established and profitable business, there are many creative ways of financing your acquisition. Cash may be king, but let's face it -- leveraging your cash gives you much more purchasing power!

    Read full post »

  • How to Prove Your Undeclared Income when Selling Your Business

    Posted by: Tawnya

    One of the greatest challenges faced by entrepreneurs that have skimmed cash from their businesses, is to establish this income as ‘earned but unreported’. Without the ability to prove the existence of this income, the buyer will exclude it from the business value and decrease his/her purchase offer accordingly.

    Read full post »