Business Succession & Strategy

Building Business Value: What Should You Be Working on Now?

Over the past several weeks, we have covered succession planning, business valuation, preparing for due diligence, buy-sell agreements and many of the issues that come up when an owner eventually sells or transfers a business. There is a common theme running through all of them. You have more options when you own a business that…

Year-End Review: Is Your Exit Plan on Track?

As you get to the end of the year, you are probably reviewing how the business performed and starting to think about plans for next year. If selling or transitioning the business is somewhere in your future, this is also a good time to look at whether you are actually making progress toward that goal.…

Common Mistakes During Business Sales

A business can sell for $10 million and still leave the owner wondering where all the money went. Taxes, transaction expenses, working capital requirements, debt, earnouts and the structure of the deal can materially change what the seller actually receives. The headline purchase price tells only part of the story. That is one reason selling…

The Importance of Buy-Sell Agreements

If you own a business with one or more partners, there is a question you should be able to answer: What happens to my ownership interest if one of us dies, becomes disabled, retires, or simply wants out? If the answer is “I’m not sure,” you are not alone. Many successful businesses operate for years…

Beyond Revenue: Financial Warning Signs Business Owners Should Monitor

Key Takeaways Review cash flow, margins, receivables, debt and working capital together rather than relying on revenue alone. Keep financial records up to date so emerging problems can be identified and addressed quickly. Use regular forecasting and internal controls to spot risks before they limit your options. Financial problems rarely appear overnight. More often, warning…

Should You Sell to Family, Employees or an Outside Buyer?

For many business owners, deciding when to leave the business is difficult. Deciding who should take over is often even harder. After spending decades building a successful company, your transition isn’t just a financial decision. It’s a personal one. Should you pass the business to your children? Sell it to loyal employees? Or maximize value…

Why Clean Financial Statements Increase Company Value

Many business owners believe buyers purchase companies based on one thing: Profit. Profit certainly matters. But here’s what experienced buyers know: Numbers only create value when they can be trusted. Imagine you’re considering buying two companies. Both generate $2 million in annual revenue. Both report the same level of profitability. One company provides timely financial…

Exit Planning Is Really Business Planning

When most business owners hear the phrase “exit planning,” they immediately think about retirement. “I’ve got another ten years.” “I’m not ready to sell.” “I still enjoy coming to work every day.” If that sounds familiar, you’re not alone. The truth is, exit planning has very little to do with leaving your business. Instead, it’s…

Preparing for Due Diligence Before You Have a Buyer

Many business owners assume due diligence begins after a buyer makes an offer. The best time to prepare for due diligence is several years before you expect to sell. Due diligence is the process a buyer uses to verify the information presented about your company. The buyer will review your financial results, tax filings, contracts,…

How to Build a Business That Doesn’t Depend on You

Many business owners take pride in being essential to their company. They approve major decisions, maintain key customer relationships, solve operational problems, review every important proposal and step in whenever something goes wrong. That level of involvement may have helped build the business. Over time, however, it can also limit the company’s growth and reduce…