Term of the Day

Cost of Debt

The cost of debt is the cost or the effective rate that a firm incurs on its current debt. Debt forms a part of a firm’s capital structure. Since debt is a deductible expense, the cost of debt is most... (Read on)

Past Terms: Asset Based LendingVertical IntegrationVertical Merger

Latest Question

Well, I think the biggest one is waiting too long to sell. The length of time between the day the owner says, "Yeah, I want to sell," and the day that they actually... (Read on)
Advice from a Real Entrepreneur on Selling a Business

There are lots of articles from advisors on selling a business. But business owners want to hear from their peers on what to look out for. In this interview, Mike Michalowicz, author and entrepreneur, provides insight on navigating through the process. 
Consider These Issues When Evaluating ESOPs

ESOPs can be a nice exit strategy for some small business owners but they are not perfect for every situation. 
Letting the Market Bridge the Valuation Gap

Unrealistic value expectations is the number one reason for only 10% of businesses for sale actually close within 3 years of going to market. How can entrepreneurs set a realistic expectation of value for their business? 
5 Tall Tales Entrepreneurs Tell to Bolster Business Value

Business owners come up with all kinds of stories to support an unrealisticly high value for their business. The problem is, most of these tales are pure fantasy. 
Pitfalls Around Earnouts (and Why They Rarely Payout)

Is an earnout right for your business sale? What should a seller be on the lookout for? 
Real Stories of Private Equity Value Creation

Understand the process and work that goes into value creation in a private equity investment. 
The Importance of Projections in Determining Business Value

It's no secret that valuations are a big part of the business selling process, and it's a critical step. Weighing future projections is a key component to determining the fair market value. 
Business Owners Beware of the Unsolicited Offer

If you become intoxicated with the thoughts of future riches, you could put your company in jeopardy. 
The Myth of Value Creation

Discover how you can exit your business at a more lucrative price to the right successor. 
A Guide To Family Business Transitions

Business succession can be a very stressful process for families. In this podcast, an industry pioneer discusses some fundamental ways for your succession to be a success. 
Why Don't Business Owners Embrace Exit Planning?

Exit planning is understand the correlation between the way a business is run and its valuation. 
Skills Needed for Successful Family Wealth Transfer

Discover the problems that face families when transferring wealth and understand what you can do to make the process a smooth one. 
Issues to Consider Before Signing an LOI

How do you choose a buyer when you have received a number of offers? Is the LOI all it is made up to be? 
Three Ways to Sell a Company

As the market becomes more favourable for business owners to sell, we look at 3 different routes for owners to sell their business. 
How to Sell Your Online Business for Maximum Value

Discover 5 ways which can help you obtain the maximum value of your online business when selling. 
Lessons Learned From Providing Over 13 Million Business Valuations

Michael Carter, CEO and President of BizEquity, talks about their simple and affordable online tool to value a lower mid-market business. 
Narrowing Valuation Gap in Oil and Gas Industry

Discover the factors driving renewed M&A activity in the oil and gas industry and how your company can take advantage of it. 
What You Don't Want to Wish After You've Sold Your Business

Building wealth doesn't just mean accumulating money. Learn what you can do now to start preparing for your transition to the rest of your life. 
Magic Tricks to Help You Get the Valuation You Want

Valuing a company is more black magic than science. These tricks will help you get the highest possible price. 
Considerations for Management Teams in Private Equity Buy-outs

Selling a business to a private equity group brings opportunity but also uncertainty for the existing management team. 
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Vertical Integration

Vertical Integration is an acquisition strategy that strategic buyers or priviate equity firms can employ to gain control of the overall supply chain. Backward... Read more 

Exit Planning

Exit planning is the complete strategy for exiting a privately held company. It involves analyzing the financial, legal and tax options and repercussions for... Read more 

Two-step Private Auction

A two-step private auction is a variation on the controlled auction process used in the sale of a privately held mid-market business. The other variation is the... Read more 

Asset Based Lending

Asset-based lending is a form of a loan that is an alternative to bank lending, where lenders carefully evaluate a company's assets (receivables, contracts and... Read more 

Deferred Consideration

Deferred consideration is a portion of the purchase price that is payable by the buyer in the future, after closing. Purchase price is negotiated on the basis of a... Read more 
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