The Value Gap, have you ever heard of it? Well, if you are thinking of selling your business in the next few years, it is a term that you should get familiar with. The value gap is the difference in price between what the seller thinks his/her business should sell for and what a buyer is willing to pay for it. Bluntly, it is unrealistic expectations on the part of the seller.
In its simplest form, the value of a business can be boiled down to just two components: risk and reward. Although a significant amount of thought and rigor is required to determine the value of a specific business, the underlying concept remains the same.
If you are on a December fiscal year-end, then now is a great time to clean up your balance sheet. As you review your assets and liabilities, consider the following: Inventory, Fixed Assets, Facilities and Leases, and Accruals.
If you don’t have the capital to fund your business growth, here are a few ideas. Which one is right for you? There is a variety of business financing available. But, like most things in life there are tradeoffs. So, consider your objectives, evaluate the alternatives and choose wisely.
Most businesses are on a fiscal year which coincides with the calendar year. Now is a good time to look back and reflect on 2019 as well as look forward and create a new budget for 2020. A budget is a roadmap. Based on where you have been, it can help guide you to the desired final destination for year-end.
A great new book is out by my friend and colleague, George Isaac. Here is a recent article from Inc.com with an interview and sneak preview of the book.
Buy-Sell Agreements are legal documents that govern how ownership will change hands in privately owned companies if and when something significant happens to one of the owners. These agreements are intended to ensure the remaining owner(s) control the outcome during critical transitions, while making sure the transitioning owner (or their estate) are treated fairly and equitably.
You started your business 10, 20 or even 30 years ago. It has been good to you. But, you’re done, or you want to be done. You are ready for the good life that retirement promises. But there is only one catch – there is no playbook for retiring from your own business. As a business owner, there are several options available to exit your business. Here are a few.
Anytime you are valuing a business, it is important to understand the concept behind the discount rate and how it is applied. The value of a business is essentially the present value of the stream of future cash flows that the business will most likely generate.
I was recently working with a manufacturer helping him crack the code on profitability for his business. One thing that struck me was the dual marketing strategies he was deploying within his smallish business. It was a challenge for him to deploy both strategies effectively. Here’s why.
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