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!
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.”
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.
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.
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.
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!
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.