Business Valuation – Key Value Drivers
Overview: There are countless methods to value a business. However, when it comes to small business sales, most transactions involve owner-operators much like the seller — individuals looking to step into the business and continue its operation. In these cases, there are four key factors that consistently drive business value: 1. Historical Business Cash Flow […]
Business Owner Strategy – Business Sale when Owning Commercial Real Estate
Business owners face unique complexities when selling their operations while simultaneously owning the underlying commercial real estate. Strategic preparation in three key areas can significantly enhance sale outcomes and buyer interest. 1. Market Rent Assessment and Adjustment Many business owners fail to adjust rental expenses in accordance with market inflation and property appreciation over time. […]
Business Sale Challenges with Multiple Owners
Many businesses have multiple owners, both active and passive. When life events lead partners to want or need to sell the business, the situation becomes complicated with multiple ownership interests. Each owner has unique timelines, expectations, and goals that must be aligned. Here are three strategies to address these challenges proactively. 1. Open Communication Establishing […]
Common Pitfalls in Selling a Business
When it comes to selling a business, many factors influence the outcome. But it all starts with buyer demand and whether your business meets buyer expectations. If you’re considering a sale, it’s important to address several key areas in advance to improve your odds of a successful, higher-value transaction. Financial Performance Buyers focus heavily on […]
How Location Impacts Business Value from an Acquirer’s Perspective
Location plays a meaningful role in how buyers assess risk, growth potential, and operational efficiency during an acquisition. While financial performance drives enterprise value, location can significantly influence a buyer’s willingness to pay a premium or apply a discount to the final valuation. Below are the primary ways location affects value from the acquirer’s viewpoint: […]
Business Consulting – Selecting a Business Broker
When you begin your exit planning, a business broker becomes one of your key advisors. Since this is likely your first and only time selling a business, how do you know who to select? Here are some essential considerations that will guide your decision. 1. Do They Know You and Your Business? The right […]
Business Consulting: Selling a Business Without a Business Broker
It’s human nature to want to save money — and certainly an Iowa norm! Many business owners field direct buyer inquiries and are tempted to navigate the sale process without professional representation. When it works, that’s a great deal! But after two decades in business acquisition financing, I’ve experienced that it rarely does. Here’s why: […]
Business Valuation: Understanding Cash Flow Addbacks
The Critical Role of Cash Flow Analysis A fundamental responsibility of business brokers is accurately determining and presenting business cash flow to potential buyers. This financial metric serves as the cornerstone of business valuation and is typically expressed through Seller’s Discretionary Earnings (SDE), EBITDA, or Adjusted EBITDA. For small business transactions, SDE represents the most […]
When Is the Right Time to Sell Your Business?
One of the most common questions I hear from owners is, “When should I sell my business?” The answer isn’t the same for everyone — but there are a few clear signs it might be time to start planning your exit. 1. Before You’re Worn Out and Tired Running a business is demanding. If you […]
Strategies for Selecting the Right SBA Lender for Your Business Acquisition Loan
When acquiring a business with an SBA loan, working with the right lender is crucial for a smooth transaction. Here’s how to identify and choose the best options: Start with SBA Preferred Lenders You’re absolutely right that SBA Preferred Lenders are the ideal starting point. These banks have demonstrated sufficient SBA lending volume and expertise […]