27 Jun Personal Goodwill: Who Owns It?
Personal Goodwill has always been a fascinating subject, impacting the sale of many small to medium-sized businesses – and possibly even larger companies. How is personal goodwill developed? An individual...
Blog
27 Jun Ownership Transition — Survey Results
Mass Mutual Life Insurance Company provided the following survey results based on family-owned businesses. Although the survey was conducted several years ago, the results are still quite revealing, and still...
27 Jun An Update on Earnouts
New accounting rules may require that acquirers and acquiring companies report earnout agreements as liabilities. Joel Johnson, president of Orchard Partners Inc., in his article, “Earnouts,” published by Valuation Strategies, states:...
27 Jun Remember: It Is Not Always the Price
The following are situations where the price was not the deciding issue in the successful sell of a business. The ultimate buyer may be the only one who really understands...
27 Jun The Three Ways to Negotiate
Basically, there are three major negotiation methods. 1. Take it or leave it. A buyer makes an offer or a seller makes a counter-offer – both sides can let the “chips fall...
27 Jun Due Diligence — Do It Now!
Due diligence is generally considered an activity that takes place as part of the selling process. It might be wise to take a look at the business from a buyer’s...
27 Jun The Offering Memorandum
A solid, factual and compelling offering memorandum maximizes the chances of not only selling a business, but obtaining the highest possible price. An offering memorandum is also referred to as...
27 Jun Considerations When Selling…Or Buying
Important questions to ask when looking at a business...
27 Jun Reasons to Sell / Reasons to Acquire
A January 2004 survey conducted by the DAK Group/Rutgers found the following breakdown of why businesses are for sale: Reasons To Sell Risk reduction 44% Competition or market changes 41% External pressures 27% Lifestyle factors (age, health, etc.) 14% Lack...
27 Jun Keys to a Successful Closing
The closing is the formal transfer of a business. It usually also represents the successful culmination of many months of hard work, extensive negotiations, lots of give and take, and...