What’s Included In The Price Of A Business For Sale?
Posted by Ed Fixen on 9/30/2011 9:31:00 AM

When investigating the acquisition or sale of a business, one of the key questions should be, “What’s included in the price?” The answer is not as intuitive or obvious as many would think. Of course each business acquisition is unique and negotiable but this article highlights the more common topics to be addressed when determining what is included in the price of a business sale. Read more...

Simple Reality Check For Price Of A Business
Posted by Ed Fixen on 9/23/2011 10:22:00 AM

When it comes time to value and sell a business, it is only human nature that most business owners have an inflated opinion about the value of their business. Unfortunately, overpricing a business and not relying on an objective, independent business valuation can lead to many problems and end up costing just as much as an undervalued business. This article is intended to provide a couple simple steps a seller or buyer can take with a little help from their business broker or advisor to do a reality check on the price of a business. Read more...

Role Of Assets In Determining Business Value
Posted by Ed Fixen on 9/15/2011 8:22:00 AM

The role of assets in determining the value of a business is not as intuitive or simple as many business owners might think. I think most business owners would agree that they do not own a business for the purpose of owning assets but instead own business assets for the very specific purpose of generating an income stream. This article highlights that the nature and quality of a company’s assets are very important factors in the overall consideration of business value and day-to-day operations, but ultimately in the valuation of a profitable, going-concern it is the income stream generated by a business that most directly determine business value. Read more...

Acquisition Financing - What Are The Options?
Posted by Ed Fixen on 9/9/2011 8:15:00 AM

Understanding acquisition financing options is important whether you are a buyer seeking to acquire a company or an owner considering selling your business. For a buyer, available financing options will play an important role in determining minimum equity investment, debt service, post-acquisition cash flow and return on investment. From a buyer’s perspective, it is most cost effective to create a capital structure that secures the most funding, offers the lowest cost of capital, and maximizes return on equity. For sellers, the availability of acquisition financing will directly affect the sale price that can be obtained since both price and terms are fundamental to the marketability of a business for sale. Read more...

Three Myths of Selling a Business
Posted by Ed Fixen on 9/2/2011 12:28:00 PM

Most business owners will only sell a business once in their lifetime. Given that selling a business can be the single most important financial event in a business owner’s lifetime, it should be helpful to have a basic understanding of some of the common myths or misunderstandings when it comes to selling a small or medium sized privately-held business.  Read more...