Middle Market M&A Link Roundup: Issue #10

Following are some of the best articles we’ve run across on selling a business, buying a business, business valuation, building value in your business, and other helpful advice on middle market M&A. Enjoy! 

3 things that happen when you hit the million-dollar mark

When it comes to selling your business, size does indeed matter. Businesses that have at least $1 million in EBITDA attract more high-quality buyers, and sell for a higher multiple. Also, be aware of the “5-20 rule.”

Don’t forget to define net working capital

One of the thorniest negotiations you may have when selling your business may have to do with the amount of net working capital included in the purchase price. Don’t let this working capital peg sneak up on you. It can be a deal killer.

7 pitfalls to avoid between LOI and closing

Reaching the LOI stage with a buyer can seem like cause for celebration, but you’re still a long way from the closing table. This article has a great list of do’s and don’ts to help you get to the finish line. Our favorite: Manage the lawyers, don’t let them manage you.

5 tall tales entrepreneurs tell to bolster business value

We love a good tough-love blog post. It’s better to get a reality check early in the process rather than risk having a buyer “laugh you out of the room.” Pay particular attention to the faulty logic behind story number three.

How to prepare to sell your company

This primer covers all the basics — from identifying potential buyers to being aware of how a sale will impact your personal financial situation. Take-away: Start early!

How to get your business advisors to sing the same tune

Selling a business requires that several middle market M&A advisors work together to help you reach your goal. They don’t all have to like each other, but they do need to play nicely in the sandbox.

For daily M&A advice follow us on Twitter @ballantaylor. Did we miss a great article? Let us know on LinkedIn.

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