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Selling a Business Archives - M&A Business Advisors https://mabusinessadvisors.com/blog/category/selling-a-business/ The Leader in Business Sales and Acquisitions Thu, 11 Sep 2025 04:11:37 +0000 en-US hourly 1 https://wordpress.org/?v=7.1.2 https://mabusinessadvisors.com/wp-content/uploads/2024/01/favicon-50x50.png Selling a Business Archives - M&A Business Advisors https://mabusinessadvisors.com/blog/category/selling-a-business/ 32 32 Sell My Business in Los Angeles? Here’s What Every Owner Should Know https://mabusinessadvisors.com/blog/2025/09/11/sell-my-business-in-los-angeles-heres-what-every-owner-should-know/ Thu, 11 Sep 2025 04:09:23 +0000 https://u3n6gtftws.onrocket.site/?p=824283 If you’ve ever asked yourself, “Should I sell my business in Los Angeles?”, you’re not alone. The vibrant and diverse economy of LA makes it an attractive market for buyers and investors. But selling a business is not as simple as putting up a “for sale” sign. From proper valuation to negotiation and closing, there […]]]>

If you’ve ever asked yourself, “Should I sell my business in Los Angeles?”, you’re not alone. The vibrant and diverse economy of LA makes it an attractive market for buyers and investors. But selling a business is not as simple as putting up a “for sale” sign. From proper valuation to negotiation and closing, there are several critical steps involved. That’s why working with professionals like M&A Business Advisors and experienced Business Brokers in Los Angeles CA is essential.

Understand Why You’re Selling

Before you even begin the selling process, define your “why.” Are you retiring? Exploring a new venture? Facing partnership issues or burnout? Understanding your motivation not only helps you structure the deal but also communicates confidence to potential buyers.

Get a Business Valuation

A professional business valuation sets realistic expectations and establishes your company’s market value. This is a key component of any business sale. Overpricing can drive buyers away, while under-pricing can result in significant financial loss. Business Brokers in Los Angeles CA often provide valuation services or can recommend trusted third-party professionals.

Prepare Financial and Operational Documents

Buyers will want to see at least 3 years of tax returns, profit & loss statements, customer contracts, lease agreements, and employee records. Organizing these ahead of time can significantly speed up the process and increase buyer confidence.

Work with a Trusted Business Broker or M&A Advisor

Trying to manage a business sale on your own can be overwhelming—and risky. That’s where professionals like M&A Business Advisors come in. With decades of experience in M&A Services Los Angeles, they specialize in mid-market transactions and help business owners confidentially navigate the sale process.

A seasoned advisor will:

  • Qualify potential buyers
  • Maintain confidentiality
  • Negotiate deal terms
  • Assist with due diligence
  • Coordinate with attorneys and accountants

Whether your business is worth $1M or $20M+, working with experts in M&A Services Los Angeles ensures that you maximize value and minimize stress.

Timing the Market

The Los Angeles market is dynamic and constantly evolving. Factors like industry trends, economic conditions, and buyer demand all influence the success of your sale. Business owners who say “I want to sell my business in Los Angeles often benefit from market timing insights provided by their broker or advisor.

Marketing Your Business Confidentially

One of the top concerns for sellers is confidentiality. Employees, vendors, and competitors should not know your business is on the market until the right time. A professional business broker will create a blind listing and pre-qualify serious buyers before revealing sensitive information.

Close the Deal

Once you accept an offer, there will be a due diligence period, legal documentation, and final negotiations. This stage is critical and can make or break the sale. Having a firm like M&A Business Advisors by your side ensures that all moving parts—from financial reviews to legal terms—are handled with expertise.

Final Thoughts

If you’ve been thinking, “It’s time to sell my business in Los Angeles,” take the steps to do it right. Partnering with reputable Business Brokers in Los Angeles CA and experienced advisors offering M&A Services Los Angeles can mean the difference between a successful exit and a costly mistake.

Don’t go it alone—align yourself with trusted professionals like M&A Business Advisors who understand the LA market and know how to deliver results.

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Selling a Healthcare Business in L.A.? Here’s What You Should Know https://mabusinessadvisors.com/blog/2025/07/15/selling-a-healthcare-business-in-l-a-heres-what-you-should-know/ Wed, 16 Jul 2025 03:44:52 +0000 https://u3n6gtftws.onrocket.site/?p=824257 If you’re considering selling a healthcare business in Los Angeles, you’re likely aware of the unique challenges and opportunities involved. From valuation complexities to regulatory compliance, healthcare business sales require expertise, precision, and the right guidance. Whether you operate a home health agency, medical clinic, or specialized care facility, understanding the nuances of the Los […]]]>

If you’re considering selling a healthcare business in Los Angeles, you’re likely aware of the unique challenges and opportunities involved. From valuation complexities to regulatory compliance, healthcare business sales require expertise, precision, and the right guidance. Whether you operate a home health agency, medical clinic, or specialized care facility, understanding the nuances of the Los Angeles market is critical to a successful exit.

Here’s what you need to know before taking the leap.

  1. Know the Value of Your Healthcare Business

Valuing a healthcare business goes beyond the standard profit-and-loss statement. Buyers want to see clean financials, a strong patient base, regulatory compliance, and a well-trained team. In Los Angeles, healthcare businesses often carry a premium due to demand, but factors such as payer mix, licensing, and contracts (e.g., Medicare or Medical) can significantly impact your business’s market value.

Engaging experts like M&A Business Advisors ensures that your valuation reflects not only your financials but also the intangible assets that drive buyer interest. Their team is experienced in helping owners understand what buyers are truly willing to pay and what improvements could increase value pre-sale.

  1. Timing Is Everything

One of the most common questions owners ask is, “When is the best time to sell my business in Los Angeles?” The answer depends on market conditions, your readiness, and business performance trends. Selling when revenues are stable or growing rather than declining  will attract more qualified buyers and better offers.

The healthcare sector in Los Angeles is constantly evolving, with consolidation trends, telehealth expansion, and post-COVID regulations influencing buyer behaviour. Knowing when to list can make or break your deal. Skilled Business Brokers in Los Angeles CA can help you track timing based on real market data, buyer demand, and sector-specific trends.

  1. Understand the Buyer Landscape

In today’s market, healthcare businesses in L.A. attract a diverse group of potential buyers, from private equity firms to individual operators and healthcare conglomerates. Each type of buyer has different goals and deal structures.

Understanding who your likely buyers are and what they’re looking for can help you tailor your business for sale. For instance, buyers may value recurring revenue streams, electronic medical record systems, or strategic locations near hospitals or underserved populations.

Working with a firm like M&A Business Advisors allows you to access a curated network of qualified healthcare buyers. They perform due diligence and vet interested parties to ensure confidentiality and minimize disruptions to your operations during the sales process.

  1. Compliance and Legal Considerations

Selling a healthcare business means navigating strict regulatory requirements. HIPAA compliance, license transfers, patient record management, and adherence to state and federal healthcare laws all play a role in a successful transaction.

Ignoring these factors can derail a deal or expose you to legal liability post-sale. Engaging professionals experienced in M&A Services Los Angeles ensures every regulatory detail is managed. From due diligence to documentation, these experts help mitigate risk and ensure smooth transitions.

  1. The Role of Business Brokers in Los Angeles CA

Trying to sell a healthcare business on your own can be overwhelming. That’s why working with experienced Business Brokers in Los Angeles CA is not only advisable it’s essential. Brokers act as intermediaries, helping sellers prepare, list, market, and negotiate their business sales.

A reputable broker understands how to present your business to attract the right buyers, protect confidentiality, and maximize sale price. They also streamline communication, document preparation, and due diligence, saving you time and avoiding costly mistakes.

  1. Customized M&A Services Los Angeles Sellers Can Trust

If your business generates over $1 million in annual revenue, it may qualify for a more structured merger or acquisition deal. Professional M&A Services Los Angeles firms specialize in matching mid-market healthcare businesses with strategic buyers.

These services include financial modelling, deal structuring, and negotiations that go far beyond basic brokerage. Companies like M&A Business Advisors provide tailored solutions based on your exit goals, whether you want to retire, reinvest, or transition leadership while staying involved.

  1. Preparing Your Business for Sale

Before listing your business, it’s crucial to address key areas:

  • Financial Clean-up: Ensure accurate, up-to-date financial statements.
  • Operational Systems: Document processes, systems, and compliance protocols.
  • Staff Stability: Highlight key team members and minimize turnover risk.
  • Licensing and Permits: Confirm all documents are in good standing.

Having these elements in place not only makes your business more attractive to buyers but also shortens the due diligence process and increases your chances of a successful close.

  1. Partnering with Experts: Why M&A Business Advisors Stands Out

M&A Business Advisors is a leading firm helping healthcare business owners sell confidently. With a local focus on the Southern California market, they understand the unique landscape of Los Angeles and offer hands-on support every step of the way.

Their comprehensive approach combines the best of both Business Brokers in Los Angeles CA and high-level M&A Services Los Angeles, giving sellers a strategic edge. From initial valuation to final negotiations, their team works tirelessly to achieve your desired outcome.

Final Thoughts

If you’ve been asking yourself, “Is now the right time to sell my business in Los Angeles?” the answer depends on your readiness, market timing, and the support system you build around the sale. Selling a healthcare business is not a transaction it’s a transition. Partnering with experienced professionals like M&A Business Advisors ensures that you exit on your terms, with the value and legacy you’ve worked so hard to build.

Whether you’re preparing now or planning a few years down the line, understanding the process today sets the stage for a successful sale tomorrow.

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Essential Meeting Tips for Buyers & Sellers of Businesses https://mabusinessadvisors.com/blog/2020/08/07/essential-meeting-tips-for-buyers-sellers/ Sat, 08 Aug 2020 00:24:37 +0000 https://u3n6gtftws.onrocket.site/?p=823517 The buyer-seller meeting is quite often a “make or break” meeting.  Your Business Broker or M&A Advisor will do everything possible to ensure that this meeting goes as well as possible. It is vitally important to realize that rarely is there an offer before buyers and sellers actually meet.  The all-important offer usually comes directly […]]]>

The buyer-seller meeting is quite often a “make or break” meeting.  Your Business Broker or M&A Advisor will do everything possible to ensure that this meeting goes as well as possible.

It is vitally important to realize that rarely is there an offer before buyers and sellers actually meet.  The all-important offer usually comes directly after this all-important meeting.  As a result, you want to ensure that meetings are as positive and productive as possible.

Buyers need to understand how the process of selling a business works and what is expected of them from the process. Buyers should also take the time to clearly express their background and financial capabilities to the seller since this is highly important to the seller. A lot of buyers dive into questions on the business without discussing their qualifications first. As sellers get more comfortable with buyers and a rapport is built, they will be more willing to share information and provide better terms. Buyers also need to understand that following their broker’s advice will increase the chances of a successful outcome.

Sellers should be ready to be honest and forthcoming during the meeting.  They also want to be sure to not say or do anything that could come across as a strong-armed sales tactic. Buyers are extremely cautious, especially in this environment. As sellers are vetting buyers, the buyer is vetting the seller and information on the business to make sure the business is a safe investment and has “transferable value”. Buyers will not consider or move forward with purchasing a business unless they feel comfortable that the business, revenue and more importantly cash flow will continue into the future.

Asking the Right Questions

If you are a buyer preparing to meet a business owner for the first time, you’ll want to make sure any questions you ask are appropriate and logical.  It is important for buyers to place themselves in the shoes of the other party. Buyers also shouldn’t show up to the buyer-seller meeting without having done their homework.  So be sure to do a little planning ahead so that you are ready to go with good questions that show you understand the business.

Building a Positive Relationship

Buyers should, of course, plan to be polite and respectful.  They should also be prepared to avoid discussing politics and religion, which often can be flashpoints for confrontation.  When sellers don’t like prospective buyers, then the odds are good that they will also not place trust in them. For most sellers, their business is a legacy.  It quite often represents years, or even decades, of hard work.  Needless to say, sellers value their businesses.  Many will feel as though it reflects them personally, at least in some fashion.  Buyers should keep these facts in mind when dealing with sellers.  A failure to follow these guidelines could lead to ill will between buyers and sellers and negatively impact the chances of success.

Sellers Should Be Truthful

Sellers also have a significant role in the process.  While it is true that sellers are trying to sell their business, they don’t want to come across as a salesperson.  Instead, sellers should try to be as real and honest as possible.

Every business has some level of competition.  With this in mind, sellers should not pretend that there is zero competition.  A savvy buyer will be more than a little skeptical.

The key to a successful outcome is for Business Brokers and M&A Advisors to work with their buyers and sellers well in advance and make sure that they understand what is expected and how best to approach the buyer-seller meeting.  With the right preparation, the odds of success will greatly increase.

 

Copyright: Business Brokerage Press, Inc.

 

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Negotiating the Price Gap Between Buyers and Sellers on the Sale of a Business https://mabusinessadvisors.com/blog/2020/07/06/negotiating-the-price-gap-between-buyers-and-sellers/ Mon, 06 Jul 2020 22:48:18 +0000 https://u3n6gtftws.onrocket.site/?p=823499   Sellers generally desire all-cash transactions; however, oftentimes some form of seller financing is necessary in business sale transactions.  Furthermore, sellers who demand all-cash deals typically receive a lower purchase price than they would have if the deal were structured differently. Although buyers may be able to pay all-cash at closing, they often want to […]]]>

 

Sellers generally desire all-cash transactions; however, oftentimes some form of seller financing is necessary in business sale transactions.  Furthermore, sellers who demand all-cash deals typically receive a lower purchase price than they would have if the deal were structured differently.

Although buyers may be able to pay all-cash at closing, they often want to structure a deal where the seller has left some portion of the price on the table, either in the form of a note or an earnout.  Deferring some of the owner’s remuneration from the transaction will provide leverage in the event that the owner has misrepresented the business.  An earnout is a mechanism to provide payment based on future performance.  Acquirers like to suggest that, if the business is as it is represented, there should be no problem with this type of payout.  The owner’s retort is that he or she knows the business is sound under his or her management but does not know whether the buyer will be as successful in operating the business.

Moreover, the owner has taken the business risk while owning the business; why would he or she continue to be at risk with someone else at the helm? It is important to understand, if the buyer is not comfortable with the deal structure, they will not move forward. Nevertheless, there are circumstances in which an earnout can be quite useful in recognizing full value and consummating a transaction.  For example, suppose that a company had spent three years and vast sums developing a new product and had just launched the product at the time of a sale.  A certain value could be arrived at for the current business, and an earnout could be structured to compensate the owner for the effort and expense of developing the new product if and when the sales of the new product materialize.  Under this scenario, everyone wins.

The terms of the deal are extremely important to both parties involved in the transaction.  Many times the buyers and sellers, and their advisors, are in agreement with all the terms of the transaction, except for the price.  Although the variance on price may seem to be a “deal killer,” the price gap can often be resolved so that both parties can move forward to complete the transaction.

Listed below are some suggestions on how to bridge the price gap:

  • If the real estate was originally included in the deal, the seller may choose to rent the premise to the acquirer rather than sell it outright.  This will decrease the price of the transaction by the value of the real estate.  The buyer might also choose to pay higher rent in order to decrease the “goodwill” portion of the sale.  The seller may choose to retain the title to certain machinery and equipment and lease it back to the buyer.
  • A subsidiary can be created for the fastest growing portion of the business being acquired.  The buyer and seller can then share 50/50 in the part of the business that was “spun-off” until the original transaction is paid off.
  • A royalty can be structured based on revenue, gross margins, EBIT, or EBITDA.  This is usually easier to structure than an earnout.
  • Certain assets, such as automobiles or non-business-related real estate, can be carved out of the sale to reduce the actual purchase price.

Although the above suggestions will not solve all of the pricing gap problems, they may lead the participants in the necessary direction to resolve them.  The ability to structure successful transactions that satisfy both buyer and seller requires an immense amount of time, skill, experience, and most of all – imagination. It therefore recommended that you work with a team of experts, M&A Advisors, Transactional Attorneys, and Business CPAs to assure a successful transaction.

 

 

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How to Make Remote Teams Accountable https://mabusinessadvisors.com/blog/2020/06/03/how-to-make-remote-teams-accountable/ Thu, 04 Jun 2020 01:55:43 +0000 https://u3n6gtftws.onrocket.site/?p=823488 One of the many, many changes that COVID-19 has ushered in is the extreme uptick in people working remotely.  Social distancing has made working from home a necessity for millions.  The technology that is allowing remote working to take place has matured greatly in the last decade.  Today, it is possible for team members to […]]]>

One of the many, many changes that COVID-19 has ushered in is the extreme uptick in people working remotely.  Social distancing has made working from home a necessity for millions. 

The technology that is allowing remote working to take place has matured greatly in the last decade.  Today, it is possible for team members to work from virtually any location.  Of course, as with most technologies, there is a potential downside.  Accountability can become a significant challenge with remote workers.  Of course, the more remote workers you have at a given time, the greater the potential challenges will be. 

Many businesses are struggling with the phenomenon of remote working, as it is something new for them.  Under normal circumstances, large numbers of employees working remotely simply wouldn’t happen.  In a recent article, “The Right Way to Keep Your Remote Team Accountable,” author Elise Keith, Co-Founder and CEO of Lucid Meetings, explores the key steps businesses should take to help ensure that their employees stay on target while working from home.

Starting Slow

Keith believes that for remote working to be effective that there are 4 major mistakes that should be avoided.  One of the biggest mistakes that employers, especially those unfamiliar with remote work, make is that they demand too much productivity right out of the gate. 

She points out that remote teams can, in fact, be very productive and even outperform their in-office counterparts.  Summed up another way, remote work can be extremely productive.  Keith’s perspective is that businesses should “identify the highest priority tasks right now and relax the rest.”  Business owners need to remember that they are not the only ones under stress.  The simple and undeniable fact is that your employees are feeling the stress of COVID-19 as well.

Getting Good at Working Remotely

The second major mistake she points to is that people are assuming the current pandemic situation is temporary.  Other crises will occur in the future, and it makes sense to be prepared.  As she phrases it, why not “get good at working remotely?”  Teams with good remote working skills are proving to be rather resilient right now.

Being Open to Technology

A third mistake she points out is businesses shouldn’t disallow the use of non-approved tools.  In short, now is not the time to worry too much about what software tools people are using.  Instead, she suggests creating an expedited process for the adoption of new tools.  If your team finds a new tool that boosts productivity, you should consider buying it. 

She astutely points out, “Software costs pale when compared to the costs of lost opportunity.”  At the heart of this point is the fact that now, more than any time in decades, is the time to set aside restrictive thinking and become more open-minded and flexible.  After all, your number one goal, and the number one goal of your clients, is to stay in business until the pandemic has passed.

Staying Flexible

Keith’s fourth mistake centers on management’s design to dictate hours and response times.  Remote work is, by its nature, going to be more flexible.  Trying to micromanage every move digitally is simply not a savvy move and will hurt morale. 

Instead, she feels businesses should opt for having a daily meeting via phone or videoconference with the team.  Additionally, she puts forth the idea of having a one-on-one meeting with every team member as well.

For many businesses and many situations, remote work may be the “only game in town.”  Trying to carry on business as usual is only going to cause headaches for everyone.  Remote work can be highly effective for you, especially when used correctly.

Copyright: Business Brokerage Press, Inc.

Goodluz/BigStock.com

The post How to Make Remote Teams Accountable appeared first on Deal Studio – Automate, accelerate and elevate your deal making.

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Great Tips for Selling Your Business https://mabusinessadvisors.com/blog/2020/04/23/great-tips-for-selling-your-business/ Fri, 24 Apr 2020 00:21:37 +0000 https://u3n6gtftws.onrocket.site/?p=823461 It takes preparation and focus to sell most businesses.  The reality of the situation is that it can take years to achieve this goal.  Partnering with a M&A Advisor is a smart step towards selling any business, as these pros know the very best tips.  In that spirit, let’s take a look at some great […]]]>

It takes preparation and focus to sell most businesses.  The reality of the situation is that it can take years to achieve this goal.  Partnering with a M&A Advisor is a smart step towards selling any business, as these pros know the very best tips.  In that spirit, let’s take a look at some great tips for selling your business.

Getting your business ready to sell means carefully evaluating the foundation.  Any significant problem can send buyers “running for the hills,” so be sure that you work out any problems well before placing your business on the market.  If you have any litigation or environmental issues, you most definitely want to address those issues before it is time to sell.  Nothing will scare away prospective buyers quicker than pending litigation or the specter of a potentially costly environmental clean-up.

A second key issue you’ll want to address is determining who exactly has the legal authority to sell the business.  If a board of directors or majority stockholder situation is in place, then selling a business can become more complex than it would be if you were dealing with a sole proprietorship or partnership.  Again, the last thing you want is for “legal surprises” to occur when you get ready to sell a business.

If you have non-negotiable items, be certain that those items are discussed upfront.  Revealing your non-negotiable items at the very beginning of negotiations will save everyone involved a great deal of trouble.

Tip three involves maintaining a flexible mindset.  In most circumstances, you simply can’t have everything that you want.  Both buyers and sellers need to be flexible.  Sellers will want to be flexible about any real estate.  Buyers may not want real estate associated with a given business, and you need to be prepared for this.  Sellers should also be prepared to accept valuation multiples for lack of management depth and other factors, such as reliance on a small number of customers.

At the end of the day, sellers should partner with experienced professionals such as attorneys and M&A Advisors.  You’ve put a lot of time, energy and resources into building your business.  When it comes time to sell, it is only prudent to put together the best team in order to achieve optimal results.

Copyright: Business Brokerage Press, Inc. 

XArtProduction/BigStock.com

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Why You Should Focus on Proper Exit Planning When Selling a Business https://mabusinessadvisors.com/blog/2020/02/12/why-you-should-focus-on-proper-exit-planning/ Thu, 13 Feb 2020 03:22:29 +0000 https://u3n6gtftws.onrocket.site/?p=823441 If you are like many business owners, you are primarily focusing on building your business.  Yet, as we’ve covered before, you should start thinking about what you’ll need to do to sell your business before you even officially do so.  Many businesses can take years to sell or even fail to sell all together.  For […]]]>

If you are like many business owners, you are primarily focusing on building your business.  Yet, as we’ve covered before, you should start thinking about what you’ll need to do to sell your business before you even officially do so.  Many businesses can take years to sell or even fail to sell all together.  For this and many other reasons, it is important to invest some time and energy into thinking about proper exit planning and strategies.

Walker Deibel’s recent Forbes article, “How Proper Exit Planning Benefits the Buyer and Seller,” Deibel discusses his interview with Exit Planning: The Definitive Guide, author John H. Brown. Brown and Deibel both agreed that, when properly handled, exit planning can help both the seller and the buyer.

Exit planning can make a business more transferable.  As Deibel points out, when buyers are evaluating businesses, transferability is a key factor.  A buyer must feel that he or she can walk into a business, take it over, keep it running effectively and even grow the business in the future.

A key aspect of being able to buy a business and having that business be successful is that all relationships from vendors to customers are transferable.  A good management team, one that can step in and help a new owner thrive, is a must.  Building that team in advance is a savvy move for any business owner looking to sell his or her business.  Concerns on any of these fronts can spell doom for a seller.  If a buyer doesn’t feel that they can operate a business, then they probably shouldn’t be buying it.

Great exit planning most definitely benefits the seller as well.  As Deibel notes, when sellers engage in exit planning, they realize how much money they need in order to exit.  In turn, this forces sellers to become very focused and goal-oriented.  Sellers will take proactive steps to ensure that their business is as appealing to a potential buyer as possible.

Ultimately, proper exit planning is a win-win, one that benefits both buyer and seller.  Exit planning can provide sellers with much-needed clarity while simultaneously lowering the overall risk that sellers face.

Selling a business is a multifaceted, and often quite complex process.  The sooner you begin working with a professional, like a M&A Business Broker, the better off you’ll be in accomplishing your objectives.  For most people, selling a business is the financial decision of a lifetime.  Having a proven trusted partner, one that knows the lay of the land, is invaluable.

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What Do You Need to Do to Get Your Business Ready to Sell? https://mabusinessadvisors.com/blog/2020/01/20/what-do-you-need-to-do-to-get-your-business-ready-to-sell/ Tue, 21 Jan 2020 02:19:15 +0000 https://u3n6gtftws.onrocket.site/?p=823427 In his recent article in Smart Business entitled, “How to get your business, and yourself, ready for sale,” author Adam Burroughs explores the key points of getting your business ready to sell.  Burroughs points to the truism that, at some point, almost every business owner must sell his or her business.  For this reason, it is critical […]]]>

In his recent article in Smart Business entitled, “How to get your business, and yourself, ready for sale,” author Adam Burroughs explores the key points of getting your business ready to sell.  Burroughs points to the truism that, at some point, almost every business owner must sell his or her business.  For this reason, it is critical to think about what it takes to get your business ready to sell.  Simply stated, it is best to explore and plan for selling your business long before you actually need to place your business on the market.  Let’s explore some key points for selling your business.

Broadening Your Options

Burroughs interviews Scott McRill at Clark Schaefer Hackett.  McRill notes, “The sooner you think about your exit, the more options you’ll have for yourself and the business when the time comes.”  A savvy business owner will always want to give himself or herself as many options as possible. McRill wisely points out that early planning is key, and a failure to engage in early planning could lead to a lower selling price.  If you want to get the best price for your business, then planning for the eventual sale as far in advance as possible is a good move.

Planning in Advance

According to Burroughs, business owners should start planning to sell their business at least 2 to 3 years before they actually plan to sell.  Part of the reason for this is so that business owners will have enough time to make operational improvements designed to maximize the business’s overall value.

A Financial Review

At the top of every business owners “preparing to sell” list is to have a third-party review the business’s financial situation.  This is excellent advice for, as frequent readers of this blog know, any serious prospective buyer will look long and hard at your business’s financials.  Getting your business’s financial house in order means that you should turn to a professional accounting firm for help, if you don’t already have one.  You’ll want to review financial statements for at least the previous 2 to 3 years and organize all the company books and records.

Burroughs points out that when it comes to selling a business, there are many variables that business owners often overlook.  At the top of the list is the management team.

Your Management Team

Prospective buyers can get very nervous about the stability of the management team once ownership has changed hands.  Often, a buyer may only sign on the dotted line and close the transaction if the owner agrees to stay on after the closing for a transition period.  Having a competent and proven team in place, one that is dedicated to staying with the company will help you get your business ready to sell and shorten the time you as the seller will have to stay on.

Selling a business is a complex and time consuming process. There are a lot of variables involved in preparing to sell a business.  The sooner that you get experts involved in the process, the better off you will be.  An experienced M&A Advisor / Business Broker can serve as a guide – one that can point you in the right direction.  Work with a M&A Advisor / Business Broker with an abundance of experience, and you’ll have an invaluable ally who can help you navigate the process.  It can take a lot of time and effort to sell a business.  Working with a M&A Advisor / Business Broker can help you accomplish your goals and sell your business at the right value.

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Understanding M&A Purchasing Agreements https://mabusinessadvisors.com/blog/2019/12/03/understanding-ma-purchasing-agreements/ Wed, 04 Dec 2019 01:30:11 +0000 https://u3n6gtftws.onrocket.site/?p=823408 M&A purchasing agreements can have a lot of moving parts when it comes to selling a business.  A recent article from Meghan Daniels entitled, “The Makings of the M&A Purchase Agreement” serves to outline a range of facts including that every M&A deal is different.  The article, which serves as a general overview, raises a […]]]>

M&A purchasing agreements can have a lot of moving parts when it comes to selling a business.  A recent article from Meghan Daniels entitled, “The Makings of the M&A Purchase Agreement” serves to outline a range of facts including that every M&A deal is different.  The article, which serves as a general overview, raises a range of good points.

Components of the Deal

It should come as no surprise that M&A purchase agreements have various components.  Everything from definitions and executive provisions to representatives, warranties and schedules, indemnifications and interim and post-closing covenants are all covered in these purchase agreements.  Other key factors included in M&A purchase agreements are closing conditions and break-up fees.

Advice for Sellers

In her article, Daniels includes a range of tips for sellers.  She correctly points out that negotiating a purchase agreement (as well as the different stages involved in finalizing that agreement) can be both time consuming and stressful. 

As any good M&A Advisor / Business Broker will tell you, business owners have to be careful not to let their businesses suffer while they are going through the complex process of selling.  Selling a business is hard work, and this fact underscores the importance of working with a proven advisor.

Likewise, Daniels observes that any serious buyer is likely to look quite closely at your business’s financials, which is yet another reason to work with key professionals during the process.  Additionally, you don’t want to wait until the last moment to get your “financial house in order.” 

You can be completely certain that prospective buyers will want to examine your finances closely before making an offer.  The sooner you begin working on getting your finances together, the better off you’ll be.

Use Trusted Pros

Another key point Daniels makes is that there will be tension, as every party is looking to protect their own best interests.  Having an experienced negotiator in your corner is a must.  Make sure your negotiator has bought and sold businesses in the past, and he or she will understand what pitfalls and potential problems may be lurking on the horizon.  Daniel’s view is that the sale price isn’t the only variable of importance.  Factors such as the terms of the deal must be taken into consideration.

The bottom line is that there are many reasons to work with a M&A Advisor / Business Broker.  They understands the diverse complexities of an M&A purchase agreement and the process.  They also have experience helping business owners organize and analyze their financial information and can prove invaluable during negotiations.  For most business owners, selling their business is the single most important business decision they will ever make.  Find a M&A Advisor / Business Broker who has experience and understands the process.

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Exploring the Offering Memorandum When Selling a Business https://mabusinessadvisors.com/blog/2019/11/14/exploring-the-offering-memorandum/ Thu, 14 Nov 2019 21:52:03 +0000 https://u3n6gtftws.onrocket.site/?p=823396 Are you a business owner who is interested in selling?  If so, there are some strategies you should undoubtedly use.  At the top of the list is the all-important offering memorandum.  The offering memorandum, often referred to as a selling memorandum, is a straightforward but highly effective way to help you obtain the highest possible […]]]>

Are you a business owner who is interested in selling?  If so, there are some strategies you should undoubtedly use.  At the top of the list is the all-important offering memorandum.  The offering memorandum, often referred to as a selling memorandum, is a straightforward but highly effective way to help you obtain the highest possible selling price.

Shaping the Executive Summary

The offering memorandum must be factual.  However, at the same time, this memorandum allows for a bit of business promotion and selling, which can be included in the executive summary portion of the document.  After all, potential buyers will want to know more about your business and why buying it would be a savvy decision. 

In short, the executive summary section of the offering memorandum goes over the highlights of your company.  It should include an outline of several key factors.  Everything from an outline of the ownership and management structure, description of the business and financial highlights to a general review of your company’s products and/or services should all be covered.  Additional points to include would be variables, such as information about your market, and the reason that the business is for sale.

Your executive summary, simply stated, is extremely important.  A coherent and compelling executive summary will motivate prospective buyers to learn more.  In short, you want the executive summary of your offering memorandum to shine.  It should capture the attention and the imagination of anyone that reads it.

Other Essential Elements to Include

Some elements are absolutely a must to have in your offering memorandum.  An overview of your company and its history as well as its markets and products are all good places to begin your offering memorandum.  Other key elements ranging from distribution, customers or clients and the competition should also be included. 

Factors such as management, financials and growth strategies should not be overlooked, as many prospective investors may flip to those sections first.  Finally, be sure to include any competitive advantages you may have as well as a well-written conclusion and exhibits.  The more polished and professional your offering memorandum, the better off you’ll be.

An easy way to improve the overall quality of your offering memorandum is to work with a seasoned Business Broker / M&A Advisor.  A professional Business Broker / M&A Advisor knows what information should be included in your offering memorandum.  He or she will also know what not to include.  Remember that your offering memorandum may be the first point of contact between you and many prospective buyers.  You’ll only get one chance to make a first impression.

Copyright: Business Brokerage Press, Inc.

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