Top Qualities of a Valuable Business

 
What are the top drivers of value in a privately held company? Is it revenue, longevity, industry type? These certainly come into play but they don't make my top 10. I've sold over 170 businesses over the past 12 years and have conducted well over 1,000 valuations of small and medium size businesses. I've encountered very few business owners over the years who were well versed in the most important elements of what creates value in a comp...

The Market is Hot: Retiring Baby Boomers and Rising Revenues Fuel Record Small Business Sales

 
BizBuySell.com's Second Quarter 2018 Insight Report examines the transactions and demographics behind the record levels of small businesses changing hands San Francisco, CA - BizBuySell.com, the Internet's largest business-for-sale marketplace, reported today a record number of small businesses changing hands in the first half of 2018. The growth can largely be attributed to a growing number of Baby Boomers exiting their business as well as...

2017 Small Biz Transactions Hit Record, Up 27% from 2016

 
The number of small businesses changing hands increased significantly in 2017, with 9,919 closed transactions reported compared to 7,842 in 2016 - a 27 percent year-over-year increase. Since 2013 as the economy recovered, transaction growth has been steady. Yet, 2017 was especially noteworthy. This high transaction volume could be attributed to a number of different factors, including improved financials, an increase in qualified buyers e...

Number of Small Business Transactions Jumps In Early 2017

 
San Francisco, CA - BizBuySell.com, the Internet's largest business-for-sale marketplace, reported today a record number of first quarter sold business transactions in early 2017. The full results are included in BizBuySell's Q1 2017 Insight Report, which aggregates statistics from business-for-sale transactions reported by participating business brokers nationwide. A total of 2,368 closed transactions were reported in the first quarter ...

Sold Small Business Revenues, Cash Flow Reach Record Highs In Early 2016

 
San Francisco, CA - BizBuySell.com, the Internet's largest business-for-sale marketplace, reported today that the median revenue and median cash flow of sold small businesses in the first quarter of 2016 reached their highest levels since BizBuySell first started tracking data in 2007. This is notable as the increased financials are resulting in higher sale prices for small businesses. The full results are included in BizBuySell's Q1 2016 In...

What People Bought in 2015 and How Much They Paid

 
BizBuySell, the Internet’s largest business-for-sale marketplace, has released its 2015 fourth quarter Insight Report, reporting closed transaction data for the U.S. business-for-sale market. Transactions stabilized in 2015, with the year ending at 3.6 percent below 2014’s record of highest number of reported transactions since BizBuySell first started tracking data in 2007. Full details are included in the BizBuySell 2015 Insight Report...

Improved Small Business Financials, Stabilized Transaction Activity in 2015

 
San Francisco, CA - BizBuySell.com the Internet's largest business-for-sale marketplace, reported today that the number of annual small business transactions stabilized in 2015, ending the year down just 3.6 percent from 2014's record high. The full 2015 and fourth quarter results are included in BizBuySell.com's 2015 Insight Report, which aggregates statistics from business-for-sale transactions reported by participating business brokers na...

Building Your Business to Sell

 
If you're like most entrepreneurs, you likely decided to become a business owner based on a decision to create a certain lifestyle and / or to provide a steady cash flow for many years to come. But have you built your business to sell? Building a business to sell doesn't necessarily mean you intend to sell in the near future. It means you have positioned your business in a way that it could sell for an optimal value in the event sell...

Q2 2015 Small Business Sales Grow

 
BizBuySell.com the Internet's largest business-for-sale marketplace, reported today that the number of small businesses listed for-sale grew more than 12 percent from the same time last year and has reached levels not seen since 2009. The increasing number of owners ready to sell comes as revenue and cash flow are rising, allowing sellers to both ask for and receive more for their businesses. The median small business asking price grew 13 pe...

Q1 2015 Business Transactions Grow

 
Small Business Transactions Up 6 Percent Over Same Time Last Year, Median Cash Flow of Sold Businesses Reaches Record High BizBuySell.com's First Quarter 2015 Insight Report shows strong transaction activity and robust business financials as the service and retail industries continue to drive market growth. San Francisco, CA - BizBuySell.com the Internet's largest business-for-sale marketplace, reported today that small business transact...

The Best Business I Ever Sold

 
After closing escrow on my 100th business a few weeks ago I found myself reminiscing over past transactions and thinking, what was the best business I ever sold? If I could turn back time and buy one of those companies for myself, which would it be and why? Prospective Buyers often ask me this question when they do not have a specific industry in mind and I find myself diving deeper into their background to find out what they are passiona...

Extracting Value From Your Business

 
Your business may be your most valuable asset. However, extracting value from your business isn't as easy as cashing out stock or selling your real estate. Real estate, no matter how beautiful or ugly the property will always hold some sort of minimum tangible value. Even when a recession hits, real estate value eventually bounces back, with no effort required of homeowners. A business doesn't necessarily work this way. You can have a mil...

Earn-Outs and Seller Financing Insights

 
Many sellers are wary of an Earn-Out or Seller Financing...But not always for good reason. I often get kickback on the idea from a seller who has either been burned in the past or knows someone who has. After a little more digging, I often find one common theme to these circumstances...The buyer put very little cash down at closing. First and foremost, a Seller should NEVER have more skin in the game than a Buyer! I hear of horror stories...

Common Mistakes to Avoid When Planning to Sell your Business

 
I wrote a related article last week on the things you can do to improve the value of your business prior to a sale, but this follow-up highlights some of the mistakes sellers make when meeting with a prospective buyer for the first time. It can take months and sometimes years to find the right qualified buyer for a business and you only get one chance at a first impression. These tips are designed to help you avoid some of the common mistake...

Secrets for Achieving Top Dollar for your Business

 
As a business broker for over 8 years and having sold nearly 100 small businesses I have seen very smooth transactions and some rocky ones. I want to help you by providing some insight on ways to increase the value of your business now, so that you are well positioned when you decide to pull the trigger and implement your exit strategy. Top 5 ways to increase the value of your business: Make sure the business does not depend too much ...

The Importance of Your 2014 Tax Return

 
If you are considering selling your business or applying for a business loan in the next few years, you may not want to be as creative with your 2014 deductions as you have been in the past. As business lending is making its way back to the market, the importance of having a clean tax return is more significant than it has been in recent years. There was a near moratorium on business lending from 2008 to 2013. In the second half of 2014, ...

Selling a Business – Do’s and Don’ts

 
A Seller's interaction with a buyer can have a huge impact on their ability to achieve top dollar for their business. In fact, this may be one of the most under-appreciated elements of a sale. You may have a thriving business but how you communicate with a buyer can make a world of difference in valuation and the likelihood that your business will even sell at all. I have been a part of countless "Wanna Get Away?" moments in meetings with...

What Makes a Business Appealing…

 
What Makes a Business Appealing to Potential Buyers? Business Owners frequently ask me what they can do to make their company more appealing to potential buyers. Besides the obvious of making your business more profitable, there are simple steps you can take to make your company stand out from the others on the market. When you list your home for sale, what is the first thing your real estate agent typically recommends? Clea...

How Much is My Business Worth?

 
I have met with very few business owners over the years who have had a strong understanding of how businesses are valued. I've heard everything from "My mailman told me Google just bought a similar company for 100 times revenue" to "I'm not sure anyone would want to buy my company." Valuing a business is certainly more of an art than a science. In real estate, you can compare price per square foot to nearby sold comps to get a quick rule ...

Pre Recession Activity Up 11%

 
According to BizBuySell.com's Second Quarter 2014 Insight Report 2014 second quarter reported the second largest number of business transactions since 2007. Over 2,000 businesses were sold/purchased this quarter suggesting 2014 could be the biggest year since 2008. "Even after a strong 2013, the business-for-sale market continues to grow as the reported deals in Q2 represent an 18 percent growth over the first quarter of 2014." This grow...

Small Business Transactions Up 11%

 
July 7, 2014 BizBuySell Second Quarter Small Business Transactions Reach Pre-Recession Activity, Up 11% Over Q2 2013, According to BizBuySell.com Report BizBuySell.com's Second Quarter 2014 Insight Report reveals transactions were just 3% short of record mark set in Q2 2008; year-to-date transactions on pace for biggest year since Report inception San Francisco, CA - July 7, 2014 -- BizBuySell.com, the Internet's largest busine...

When Is The Right Time to Sell Your Business?

 
  The answer is simple. Right after your business has peaked!...yes, in a perfect world. Like anything else, if you had a crystal ball there would be no need to ponder the question. In my 7+ years of selling businesses, I have seen an immense amount of change in the market. Right before the crash at the end of 2007, the availability of bank financing was spiking valuations. It seemed at the time if you had a pulse, the banks would...

Should you drain your 401(k) to start a business?

 
By Parija Kavilanz  @CNNMoney June 23, 2014: 6:08 AM ET Original article may be found at CNN.Money.com Eric Schneider emptied his 401(k) to start a specialty coffee and tea shop with his wife Nancy in 2012. Two years later, the business is set to log a profit. NEW YORK (CNNMoney) If you're saving for retirement, one of the cardinal rules is: "Don't touch your 401(k) until you retire." Eric Schneider followed it diligently during ...

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