Warren Buffet once said that investors should be “fearful when others are greedy, and greedy when others are fearful”. Now, more than ever, it’s important for business owners to get this right. Thanks to the economic mayhem that’s been caused by COVID-19, there are thousands of companies struggling to stay afloat. There are also thousands
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Most business owners are afraid to talk to anyone when they are ready to sell their business. They fear the competition will find out and use it to their advantage. However, there are more things to fear than your competition. Discovering that your business is for sale will also impact vendors, customers, employees, lenders, and
The US Federal Government’s response to COVID-19 has created the greatest redistribution of wealth in US history. The financial programs the US Government has implemented in response to the economic fallout caused by the COVID-19 global health crisis will ultimately move significant wealth from those in the upper tier of economic status to those in the
Business owners preparing to sell their company can boost confidence in their numbers with a high quality of earnings report to validate that its profits are sustainable over time. A quality of earnings review is like a financial statement audit but goes well beyond the balance sheet. By focusing on the company’s earning power, this type
A focus on current tax laws and flexible planning can help business owners build a succession plan that reduces tax impacts. This can mean everything for the retiree, his family and other stakeholders who want to avoid paying a large percent of the company’s assets to Uncle Sam. Succession planning is a long-term strategic plan
Mid-market companies often look to private equity groups for capital and business expertise that can take them to the next level. But unlike the big deals flagged in the news media, these agreements routinely fly under the radar. That’s because about 80 percent of mid-market companies are privately held and many of these deals fall
Business owners often face a once in a lifetime deal as they contemplate the sale of their company. It’s best to think of the process as a marathon rather than a sprint, considering that it begin well before due diligence and extends well past the deal’s completion. Acquisitions usually take six to 12 months or
Acquisition can be the fastest and most effective way for a company to gain new customers and boost productivity and profits. Most companies will never succeed on organic growth alone. Almost every large company in the world has been built on at least one, if not more, acquisitions and mergers. Depending on the level of
Most owners of family businesses dream of their grandchildren and great-grandchildren taking over the enterprise someday. But the reality is, only 43 percent of them have a succession plan to ensure the company’s longevity and only 12 percent make it to the third generation. “If there is one area in which most family businesses could
A financial valuation is critical to succession planning, whether it’s accomplished by selling the business, establishing partner ownership percentages or seeking financing. The exit strategy will hinge on valuation that, among other things, will consider earnings, assets and how the business compares to its competition. In a broad sense, a financial valuation takes markets and