Monthly Archives: February 2014

Why Sell? No Need to Go it Alone.

"Why do you need to wreck this company?  - Bud Fox "Because it's WRECKABLE, all right? - Gordon Gekko A common misconception among entrepreneurs (and the public) is that buyers of businesses channel Gordon Gekko on a regular basis, looking to destroy rather than build. Nothing could be further from the truth.  Buyers can often provide middle market business owners the opportunity to increase their wealth by collaborating on accelerating growth. Buyers, whether financial or strategic, Read More [...]

Calculating your Company’s True Profitability: What Adjustments to EBITDA are Appropriate?

While hardly the only option, it has become fairly routine for middle market transactions to use EBITDA as the measure of value.  EBITDA stands for Earnings Before Interest, Taxes, Depreciation and Amortization.  So, it is effectively a company's net profit plus any expenses incurred for interest, taxes, depreciation and amortization. Despite sounding like a relatively straightforward calculation, it is important to carefully analyze this number along with the company's financial statements Read More [...]

How Long Will it Take to Sell My Company?

Often, one of the first questions I get asked by clients is "how long do you expect a transaction to take?"  While I would love to be able to tell them that it is going to be quick and easy, the real answer is that is probably going to take nine to 12 months to get through a transaction. I try to divide the process into four stages for my clients: Preparation:  From the time I am retained, preparing a client for sale can take as little as one month, but sometimes can take much longer than Read More [...]

Planning Ahead

I recently met with a local investment advisor, and we discussed a few of our clients:  how they grew their businesses, what their plans for an ultimate transition were, and whether their transactions were as successful as they'd hoped. The common thread throughout the discussion was that those of our clients that had planned for a liquidation event were much more successful than those that had not. Transactions are very, very difficult.  There are many factors pulling buyers, sellers, lenders, Read More [...]