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Expert

Embracing exit planning in M&A transactions can substantially boost a business's value by shifting focus from income generation to value acceleration, closing the Wealth Gap and Value Gap, and assembling a strong advisory team for a successful transition.
Whether you are selling to a new company or retiring from the business, you need a proper exiting strategy. Exiting without a sound strategy can prove to be a dangerous move for your business. The best exit strategy is one that fulfills all of your personal goals without putting the company at risk
Read the Full Article
By: Lyle Solomon | Principal Attorney
Ecommerce and SaaS businesses are taking up a larger market share every day. A savvy business broker will recognize the trends and learn how exiting these kind of businesses is different from traditional brick and mortar.

How I Sold My Business

Whether you are selling to a new company or retiring from the business, you need a proper exiting strategy. Exiting without a sound strategy can prove to be a dangerous move for your business. The best exit strategy is one that fulfills all of your personal goals without putting the company at risk
Read the Full Article
By: Lyle Solomon | Principal Attorney
Jason Gibson’s approach to selling his mid-sized business focused on a personal connection with potential buyers and created a non-adversarial environment for the process in doing so.
The emotional aspects of exiting your business are sometimes underplayed. Laura Coe sold Litholink and learned how tough it can be.
When a company like Intuit comes knocking, you answer… eventually. The first in Divestopedia’s How I Sold My Business series, with Nellie Akalp.

Maximize Value

Great advisory boards bring innovation and opportunity, but can they increase the overall value of your organization?
Companies need a roadmap to help them achieve measurable financial value creation. This article provides the various levers that company owners can focus on to amplify value in their business.
Whether you are selling to a new company or retiring from the business, you need a proper exiting strategy. Exiting without a sound strategy can prove to be a dangerous move for your business. The best exit strategy is one that fulfills all of your personal goals without putting the company at risk
Read the Full Article
By: Lyle Solomon | Principal Attorney
This article is an excerpt from Equicapita’s “Little Book of What Next?”
When building enterprise value for your business, a good strategic plan is critical.
The most common EBITDA adjustments you need to know when it comes time to sell your business.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.
For those involved in M&A, EBITDA (earnings before interest, taxes, depreciation and amortization) is the often-referenced, industry standard metric that plays a major role in how companies are traditionally valued. For those considering a sale of their business — the rule is that when you maximize EBITDA, you can maximize valuation.
A recently published Fairfield University whitepaper is the first comprehensive study quantifying the value of the services provided by an investment bank during the sales process, as determined by a survey of business owners who sold their business during the last five years.
The flows in our 500-year-old double-entry accounting system for recognizing the value of intangible assets are at the heart of a current and pervasive debate in the accounting and finance professions.
We’re witnessing a global economic shut down that has never been experienced in human history. Business owners will unfortunately suffer but past recessions can provide guidance on how to survive.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.
To maximize price, you need to know what the investor is really looking for. Requirements vary widely from investor to investor, so learn to ask the right questions and what numbers really matter.
Learn what you can do if you lose your biggest client and your business’ sustainability is threatened.

Post Sale

Getting the deal done is one thing — living with your new partners (or boss!) is another. In this article we talk about the first 90 days post deal and what you can learn from an entrepreneur who is now on the buy side.
When a company like Intuit comes knocking, you answer… eventually. The first in Divestopedia’s How I Sold My Business series, with Nellie Akalp.
Thinking of selling your business? A helpful guide to figuring out if you are ready to sell and what you can look forward to after.
Opportunity zone investments can be worth a look if you’re facing capital gains and have the ability to invest.
How to prevent seller’s remorse and leave your business feeling positive about the process.
Michael Dash shares the lessons he learned from spending six years and a million dollars fighting with his business partner.
Jennifer Fondrevay of Day One Ready explains the thing most owners overlook when approaching transitioning their business after a sale.
The odds are against high net worth families to properly transfer wealth between generations. Here are four ways to preserve family wealth.
Work-life balance is impossible to achieve. Learn a more realistic method which will also carry through to your eventual exit.
In this podcast, Laura Rich discusses the emotional impact selling your business has and some tactics to lessen its effects.
This podcast takes you through Ryan Moran’s successful closing of an eight-figure deal and what he did to make it happen.
Find out why you need the right person to draft up your legal documents as an entrepreneur.

Pre Sale

Embracing exit planning in M&A transactions can substantially boost a business's value by shifting focus from income generation to value acceleration, closing the Wealth Gap and Value Gap, and assembling a strong advisory team for a successful transition.
The article underscores the symbiotic relationship between Financial Advisors and M&A Advisors, emphasizing the importance of harmonizing business, personal, and financial objectives for successful business transitions. Effective communication, role clarity, and a comprehensive approach are key in navigating the complexities of such transactions. Business owners benefit most when these professionals collaboratively address both immediate transactional needs and long-term financial goals.
Effective exit planning is essential for a successful business transition. Without proper preparation and expert guidance, sellers may face valuation disputes, unmet financial goals, and protracted negotiations. Involving a diverse team of experts ensures a holistic approach, maximizing potential outcomes and minimizing unforeseen challenges.
When it comes to maximizing the various deal sources that can feed your acquisition funnel, there are a few options in terms of deal sourcing technology, platforms and services that you can use.
Business owners: prepare for the single largest financial transaction in your lifetime.
Here are the key elements you should consider before you decide whether to sell to a strategic buyer or private equity.
Read the Full Article
By: Jack Kearney | Managing Director
A business owner that is contemplating the sale of his business could greatly benefit from rigorous buyer feedback two of three years prior to actually beginning the business sale process.
Great advisory boards bring innovation and opportunity, but can they increase the overall value of your organization?
This article explains how to negate the due diligence grind that can potentially decrease your sale price.
When you sell your business, you need to know what the net proceeds will be. The purchase price is fine, but the net proceeds is ultimately what you need to know. In this article, we discuss how to compute these net proceeds.
There are a ton of different ways you can make considerations for your management team when it comes to private equity buyouts. Watch out for conflicts of interest and provide the right incentives for success.
Don’t wait for the New Year. Be proactive about your future and start your exit plan today, with these three simple steps.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.

Quotes

Business owners should be spending time on activities that can add the greatest value to their businesses. Rob Slee, renown value creation expert, breaks down key areas to focus on.
Have you defined what a “successful” exit actually looks like? Do you have a realistic goal for when you want to sell the company and how much you want to sell it for?

Sale Process

In the business world, mergers and acquisitions (M&A) are typically seen as financial transactions, but they have a deeply personal impact on business owners. When considering an exit strategy, owners grapple with questions about their legacy, life outside the business, and their identity.
In the M&A world, there are few terms as dreaded as the “Re-Trade”.  Learn how to avoid them.
When it comes to selling your business, it's important to play the field.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.
Here are the key elements you should consider before you decide whether to sell to a strategic buyer or private equity.
Read the Full Article
By: Jack Kearney | Managing Director
This article explains how to negate the due diligence grind that can potentially decrease your sale price.
Sellers tend to have no idea how a buyer has financed an acquisition, but a closer look inside can show a business owner what it takes to complete a deal.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.
There are a ton of different ways you can make considerations for your management team when it comes to private equity buyouts. Watch out for conflicts of interest and provide the right incentives for success.
Understanding how customers will perceive news of your acquisition will improve the transition. Learn about the need for planning and the costs to manage customer perceptions.
Jason Gibson’s approach to selling his mid-sized business focused on a personal connection with potential buyers and created a non-adversarial environment for the process in doing so.
The emotional aspects of exiting your business are sometimes underplayed. Laura Coe sold Litholink and learned how tough it can be.
While the industry may be slow to adopt artificial intelligence and machine learning, those who use the latest in M&A technology will have the advantage.
When a company like Intuit comes knocking, you answer… eventually. The first in Divestopedia’s How I Sold My Business series, with Nellie Akalp.

Valuation

Great advisory boards bring innovation and opportunity, but can they increase the overall value of your organization?
This article explains how to negate the due diligence grind that can potentially decrease your sale price.
Sellers tend to have no idea how a buyer has financed an acquisition, but a closer look inside can show a business owner what it takes to complete a deal.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.
There are lots of acronyms to know in the world of divestments. EBITDA is one of the most important. Here’s what you need to know.
The most common EBITDA adjustments you need to know when it comes time to sell your business.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.
Avoid overestimating the value of your business’s goodwill to keep sales expectations realistic.
A recently published Fairfield University whitepaper is the first comprehensive study quantifying the value of the services provided by an investment bank during the sales process, as determined by a survey of business owners who sold their business during the last five years.
We must fully invest in the growth and development of our human capital by providing education and training to our teams at all levels to teach how to become farmers inside our companies and in their own lives.
The flows in our 500-year-old double-entry accounting system for recognizing the value of intangible assets are at the heart of a current and pervasive debate in the accounting and finance professions.
Determining the value of your business is the starting point to building value. Here’s how to set up a simple valuation template in excel.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.
Learn what makes up a good valuation and start the process before it’s too late.
Below are nine key risk factors that you can expect to see in any business appraisal.

Company Discount

Understand the role of operations due diligence as an M&A and business analysis tool.
Talking up your business is a good thing, right? Only if you’re telling the truth.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.
Valuation is an iterative process — you have to cycle through variables like markets, competition, management and assets multiple times before you can build a reliable financial forecast and discount it back to today.
Recurring revenue is the holy grail for business owners looking to have a valuable and sellable company. Learn how to secure stable and predictable cash flow in your business.
If you are approached with an unsolicited offer to buy your business, be careful. Often times it is a bottom feeder looking to get a bargain and your company is one of dozens that are similarly contacted. If you become intoxicated with the thoughts of future riches, you could put your company in jeopardy.

Company Premium

Companies need a roadmap to help them achieve measurable financial value creation. This article provides the various levers that company owners can focus on to amplify value in their business.
This article is an excerpt from Equicapita’s “Little Book of What Next?”
There are a ton of different ways you can make considerations for your management team when it comes to private equity buyouts. Watch out for conflicts of interest and provide the right incentives for success.
Identifying and articulating the goodwill in your business can have a significant impact on value.
Building a business is hard work, but achieving your goals makes it all worthwhile.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.
With supposedly so many buyers and sellers of businesses, why is it still so hard to close a deal? Here are the 5 misconceptions that create this gap between them.
You can be the driver of value for your own business by starting with an assessment of how it stacks up against these valuation parameters.
Attract a high multiple for your private company by learning how the sales process impacts a company valuation.
Meticulous financial records will get you more for your business by mitigating risk early in the process.
Understand the role of operations due diligence as an M&A and business analysis tool.
Valuations may be massaged, but you’ll rarely have a company pay you today for what your company might be worth in five years. Convertible bonds can help you bridge that gap.
Learn why private companies are valued lower than their public peers, and what you can do to offset this.

Differentiation

Companies need a roadmap to help them achieve measurable financial value creation. This article provides the various levers that company owners can focus on to amplify value in their business.
Identifying and articulating the goodwill in your business can have a significant impact on value.
A seller who is looking for capital and expertise to continue growing the business may want to consider being part of a roll-up.
The customer experience is a vital part of the success of your business, so figuring out how to engage your employees to work the business like you would is important.
Understanding what value drivers are so you can improve them and, therefore, your valuation.
Get answers to the questions who will buy my company and what are they looking for in an acquisition?
Attract a high multiple for your private company by learning how the sales process impacts a company valuation.
Looking at the market from an acquisition standpoint will allow you to see growth opportunities that differ from building a business from the ground up.
A well-definited business model sets you apart from the competition, especially if you’ve developed your barriers to entry.
Learn how to use recurring revenue to get better and more competitive offers when you go to sell your business.
Waiting for the right time is worth it, especially if you grow your business in the meantime.
Your business story should be customer-focused, not focused on your business’ history. Learn the difference in this podcast.

Exit Planning

Embracing exit planning in M&A transactions can substantially boost a business's value by shifting focus from income generation to value acceleration, closing the Wealth Gap and Value Gap, and assembling a strong advisory team for a successful transition.
The article underscores the symbiotic relationship between Financial Advisors and M&A Advisors, emphasizing the importance of harmonizing business, personal, and financial objectives for successful business transitions. Effective communication, role clarity, and a comprehensive approach are key in navigating the complexities of such transactions. Business owners benefit most when these professionals collaboratively address both immediate transactional needs and long-term financial goals.
Effective exit planning is essential for a successful business transition. Without proper preparation and expert guidance, sellers may face valuation disputes, unmet financial goals, and protracted negotiations. Involving a diverse team of experts ensures a holistic approach, maximizing potential outcomes and minimizing unforeseen challenges.
Business owners: prepare for the single largest financial transaction in your lifetime.
When you sell your business, you need to know what the net proceeds will be. The purchase price is fine, but the net proceeds is ultimately what you need to know. In this article, we discuss how to compute these net proceeds.
Whether you are selling to a new company or retiring from the business, you need a proper exiting strategy. Exiting without a sound strategy can prove to be a dangerous move for your business. The best exit strategy is one that fulfills all of your personal goals without putting the company at risk
Read the Full Article
By: Lyle Solomon | Principal Attorney
Don’t wait for the New Year. Be proactive about your future and start your exit plan today, with these three simple steps.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.
There are lots of acronyms to know in the world of divestments. EBITDA is one of the most important. Here’s what you need to know.
The only way to ensure a successful exit from your business is by learning as much as you can before launching the process.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.
There are lots of exit options for business owners when it comes time to sell. The key is to keep expectations realistic.
Thinking of selling your business? A helpful guide to figuring out if you are ready to sell and what you can look forward to after.
Transitioning out of your business is difficult. Decide now what kind of life you want next.

Financial Metrics

This article is an excerpt from Equicapita’s “Little Book of What Next?”
Sellers tend to have no idea how a buyer has financed an acquisition, but a closer look inside can show a business owner what it takes to complete a deal.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.
The most common EBITDA adjustments you need to know when it comes time to sell your business.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.
To maximize price, you need to know what the investor is really looking for. Requirements vary widely from investor to investor, so learn to ask the right questions and what numbers really matter.
Whether you’re thinking of moving your company to another state, or abroad, or working abroad as an individual, learn the dos and don’ts of U.S., International and interstate tax before you do.
Learn what to watch out for when using venture capital and how it stacks up to other forms of funding, both traditional and inventive.
Opportunity zone investments can be worth a look if you’re facing capital gains and have the ability to invest.
Learn how Michael Kaplan scaled his business from $300k to 18 million, despite not having everything lined up.
The Due Diligence Grind is often practiced by sophisticated acquirers to reduce the purchase price of a business by citing negative findings during due diligence.
Matt Boettner walks us through the financing options he used to structure the deal, what other options were out there and why he didn’t go down those roads.
Learn what matters, sometimes more than the numbers, when it comes to M&A deals.
Entrepreneurs need more data on what drives the value in their companies if they want to compete successfully in the middle market.

Forecasting

This article explains how to negate the due diligence grind that can potentially decrease your sale price.
While the industry may be slow to adopt artificial intelligence and machine learning, those who use the latest in M&A technology will have the advantage.
For those involved in M&A, EBITDA (earnings before interest, taxes, depreciation and amortization) is the often-referenced, industry standard metric that plays a major role in how companies are traditionally valued. For those considering a sale of their business — the rule is that when you maximize EBITDA, you can maximize valuation.
The flows in our 500-year-old double-entry accounting system for recognizing the value of intangible assets are at the heart of a current and pervasive debate in the accounting and finance professions.
We’re witnessing a global economic shut down that has never been experienced in human history. Business owners will unfortunately suffer but past recessions can provide guidance on how to survive.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.
Learn what you can do if you lose your biggest client and your business’ sustainability is threatened.
The key to a successful deal is to prepare well, come out strong and maintain momentum throughout the business sale process.
Don’t overlook using a business developer to increase the productivity and value of your business.
The Due Diligence Grind is often practiced by sophisticated acquirers to reduce the purchase price of a business by citing negative findings during due diligence.
Learn how to use recurring revenue to get better and more competitive offers when you go to sell your business.
Business owners: Don’t limit your options. Here’s how to plan and evaluate the best option for you.
Great rap insights on increasing your valuation and successfully selling your business.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.

Management Team

Great advisory boards bring innovation and opportunity, but can they increase the overall value of your organization?
There are a ton of different ways you can make considerations for your management team when it comes to private equity buyouts. Watch out for conflicts of interest and provide the right incentives for success.
When and why you should do a MBO, and what the financing can look like.
Before you hand your business over to the next generation, keep these 8 things in mind as you transition your company.
The operating partner in private equity has developed into a critical person (and group) for the PE firm and for the investments they become involved in.
A stable, skilled, quality workforce is one of the top value drivers that contributes to the purchase price of a business.
Avoid these 5 candidate types when selecting a potential successor.
MBOs are risky, but can be mutually rewarding when these three key areas of focus are done right.
Valuation is an iterative process — you have to cycle through variables like markets, competition, management and assets multiple times before you can build a reliable financial forecast and discount it back to today.
Discover how you can further maximize your company’s shareholder value by playing the long game and what factors are most likely to influence your price point.
Use this handy list of pitfalls and ways to avoid them to prepare yourself for the M&A process.
High-performing boards take time to design properly, but — once established — can add significant value to an enterprise.

Process Documentation

The Due Diligence Grind is often practiced by sophisticated acquirers to reduce the purchase price of a business by citing negative findings during due diligence.
A stable, skilled, quality workforce is one of the top value drivers that contributes to the purchase price of a business.
Missing deadlines as either buyer or seller has consequences on the deal.
There are many drivers that can increase the value of a business, but one is more important than any other.
How to prevent seller’s remorse and leave your business feeling positive about the process.
Understand the importance of documented systems that allow owners to remove themselves from the business.
Clarifying the letter of intent in the beginning can help you avoid killing a deal in the end.
Do you understand the new tax laws? Here are some tips for getting started.
Use this handy list of pitfalls and ways to avoid them to prepare yourself for the M&A process.
If you’re preparing to sell your business, you’ll want to spend the next 180 days updating contracts, financial reporting and human resources.
Earnouts are difficult legal clauses to manage and can often lead to misunderstanding and difficulty realizing them. Here is a practical example of some of the pitfalls that sellers should watch for.
This is part three of a three-part series that identifies the natural advantages that business buyers bring to the table before the transaction process even starts.

Readiness

When it comes to selling your business, it's important to play the field.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.
When you sell your business, you need to know what the net proceeds will be. The purchase price is fine, but the net proceeds is ultimately what you need to know. In this article, we discuss how to compute these net proceeds.
The most common EBITDA adjustments you need to know when it comes time to sell your business.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.
Transitioning out of your business is difficult. Decide now what kind of life you want next.
We’re witnessing a global economic shut down that has never been experienced in human history. Business owners will unfortunately suffer but past recessions can provide guidance on how to survive.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.
Below are nine key risk factors that you can expect to see in any business appraisal.
A business owner should consider the five key factors in their search in selecting the right investment banker for the sale process.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.
Charles Smith outlines why it’s important to start the exit with the end, rather than the other way around!
This article will show you what mistakes many of your fellow business owners have made and which you can learn from!
Succession planning is for companies of every size, so have you thought about doing it for your business yet?
Before you hand your business over to the next generation, keep these 8 things in mind as you transition your company.

Customer Communication

Understanding how customers will perceive news of your acquisition will improve the transition. Learn about the need for planning and the costs to manage customer perceptions.
Learn what you can do if you lose your biggest client and your business’ sustainability is threatened.
The customer is always right applies not just to restaurants, but also to digital services businesses.
Get an idea of expected net cash proceeds from the sale of your business with the example below.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.

Employee Communication

ESOPs can be a nice exit strategy for some small business owners, but they are not perfect for every situation.
There are many drivers that can increase the value of a business, but one is more important than any other.
Learn what matters, sometimes more than the numbers, when it comes to M&A deals.
Employee-first culture is vital in today’s business world if you want to build a successful and profitable company.
Kelly takes us through the whole process of starting a business from why to the inevitable exit. Learn from her experiences and perfect your process!
Maintaining a strong integration process throughout a merger and acquisition can make everything run more smoothly and increase the chance of a positive outcome for all involved.
Three areas to consider when deciding if now is the right time to sell your business.
It’s important to incorporate incentives to harness your deal team’s commitment to the successful sale of your business while minimizing uncertainties during this transitional period.
What if you died and your spouse just inherited your business. What should they do with it? Learn more about business continuity planning in cases of unforeseen events.

Expectations

Embracing exit planning in M&A transactions can substantially boost a business's value by shifting focus from income generation to value acceleration, closing the Wealth Gap and Value Gap, and assembling a strong advisory team for a successful transition.
Effective exit planning is essential for a successful business transition. Without proper preparation and expert guidance, sellers may face valuation disputes, unmet financial goals, and protracted negotiations. Involving a diverse team of experts ensures a holistic approach, maximizing potential outcomes and minimizing unforeseen challenges.
This article explains how to negate the due diligence grind that can potentially decrease your sale price.
Thinking of selling your business? A helpful guide to figuring out if you are ready to sell and what you can look forward to after.
Below are nine key risk factors that you can expect to see in any business appraisal.
A seller who is looking for capital and expertise to continue growing the business may want to consider being part of a roll-up.
Here are some issues you may face when it’s time to sell your company. Prepare yourself and don’t make these mistakes!
Building a business is hard work, but achieving your goals makes it all worthwhile.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.
The key to a successful deal is to prepare well, come out strong and maintain momentum throughout the business sale process.
Charles Smith outlines why it’s important to start the exit with the end, rather than the other way around!
Figuring out how to put your charitable actions to work for you has never been easier than Luther Ranheim’s solution of a donor-advised fund to offset taxes at time of sale.
Learn what matters, sometimes more than the numbers, when it comes to M&A deals.

First 100 Days

Getting the deal done is one thing — living with your new partners (or boss!) is another. In this article we talk about the first 90 days post deal and what you can learn from an entrepreneur who is now on the buy side.
Jennifer Fondrevay of Day One Ready explains the thing most owners overlook when approaching transitioning their business after a sale.
Earnouts are underused and misunderstood, but this is simply because they aren’t appropriate in all circumstances.
Maintaining a strong integration process throughout a merger and acquisition can make everything run more smoothly and increase the chance of a positive outcome for all involved.
This podcast with Kevin McCarthy covers the why behind using your purpose to define and build both your life and business, making you more successful in both.
Cody McLain shares his business experiences in building and selling his company, as well as learning how to delegate to a team you trust.
​Acquisition integrations are just like major surgery. Precise execution and quick completion are best. Learn key approaches and leading practices.
Paul Wormley from Hadley Capital digs deeper into the specifics about what a business owner can expect to change upon closing a deal with a private equity partner in regards to financial reporting and budgeting.
Paul Wormley from Hadley Capital digs deeper into the specifics about what a business owner can expect to change upon closing a deal with a private equity partner in regards to employees, contracts and the addition of a board of directors.
Expect the following changes after closing a deal with a private equity firm.
We are in the midst of a demographic tsunami with respect to business ownership transition. Since about 2005, the press has been heralding the emerging wave of baby boomer business owners who will and must transition the ownership of their businesses. The business environment for business transactions soured late in the last decade and many owners, waiting for changes in the estate tax laws, deferred much-needed estate planning activities. The bottom line is that the pent-up demand for transitions that began to emerge in the last decade will have its day. Will you, as a business owner, be ready? If you are an advisor, will your clients be ready?
If you could purposely – not accidentally, but purposely – create the culture that had the highest probability of causing your people to perform at the highest levels, wouldn’t it make total sense to do that?

First Year After Acquisition

Opportunity zone investments can be worth a look if you’re facing capital gains and have the ability to invest.
Michael Dash shares the lessons he learned from spending six years and a million dollars fighting with his business partner.
Jennifer Fondrevay of Day One Ready explains the thing most owners overlook when approaching transitioning their business after a sale.
It may seem counterintuitive, but sometimes buying back the business you sold is the best decision you’ll make.
Strategic planning is a necessary part of a successful M&A deal. Make sure your newest acquisition will survive the sale. Here’s how.
​Acquisition integrations are just like major surgery. Precise execution and quick completion are best. Learn key approaches and leading practices.
Branding strategies impact how your new acquisition or merger is accepted in the marketplace.
Mergers and acquistions are hard enough without these surprisingly common reasons they can fail. Learn how to avoid these mistakes and strengthen your M&A strategy.
Mergers and acquisitions lead to branding questions. What does your new brand need to say about you? Here are some key factors to consider.
Branding plays an undervalued role in the success of any merger and acquisition.
Eighty percent of people with wealth in excess of $5 million gain it through entrepreneurship. Learn about wealth management strategies from Richard C. Wilson, a leading professional in the area of family offices for the ultra-wealthy.
Paul Wormley from Hadley Capital digs deeper into the specifics about what a business owner can expect to change upon closing a deal with a private equity partner in regards to financial reporting and budgeting.

Week After Closing

How to prevent seller’s remorse and leave your business feeling positive about the process.
Jennifer Fondrevay of Day One Ready explains the thing most owners overlook when approaching transitioning their business after a sale.
Earnouts are underused and misunderstood, but this is simply because they aren’t appropriate in all circumstances.
Use this handy list of pitfalls and ways to avoid them to prepare yourself for the M&A process.
Cody McLain shares his business experiences in building and selling his company, as well as learning how to delegate to a team you trust.
​Acquisition integrations are just like major surgery. Precise execution and quick completion are best. Learn key approaches and leading practices.
Eighty percent of people with wealth in excess of $5 million gain it through entrepreneurship. Learn about wealth management strategies from Richard C. Wilson, a leading professional in the area of family offices for the ultra-wealthy.
Paul Wormley from Hadley Capital digs deeper into the specifics about what a business owner can expect to change upon closing a deal with a private equity partner in regards to financial reporting and budgeting.
Paul Wormley from Hadley Capital digs deeper into the specifics about what a business owner can expect to change upon closing a deal with a private equity partner in regards to employees, contracts and the addition of a board of directors.
Expect the following changes after closing a deal with a private equity firm.
We are in the midst of a demographic tsunami with respect to business ownership transition. Since about 2005, the press has been heralding the emerging wave of baby boomer business owners who will and must transition the ownership of their businesses. The business environment for business transactions soured late in the last decade and many owners, waiting for changes in the estate tax laws, deferred much-needed estate planning activities. The bottom line is that the pent-up demand for transitions that began to emerge in the last decade will have its day. Will you, as a business owner, be ready? If you are an advisor, will your clients be ready?
Bo Burlingham’s book, “Finish Big,” summarized his research with entrepreneurs on the keys to a successful and happy exit from a business.

Week Before Closing

How to prevent seller’s remorse and leave your business feeling positive about the process.
Use this handy list of pitfalls and ways to avoid them to prepare yourself for the M&A process.
If the price can go down during the due diligence process, then the price should also be able to go up.
Competitive tension is essential to exert control over the sale process and present an enforceable timeline to bidders.

Deciding to Sell

When it comes to maximizing the various deal sources that can feed your acquisition funnel, there are a few options in terms of deal sourcing technology, platforms and services that you can use.
When it comes to selling your business, it's important to play the field.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.
Business owners: prepare for the single largest financial transaction in your lifetime.
When you sell your business, you need to know what the net proceeds will be. The purchase price is fine, but the net proceeds is ultimately what you need to know. In this article, we discuss how to compute these net proceeds.
Transitioning out of your business is difficult. Decide now what kind of life you want next.
As the market becomes more favorable for business owners to sell, we look at three different routes for owners to sell their business.
To maximize price, you need to know what the investor is really looking for. Requirements vary widely from investor to investor, so learn to ask the right questions and what numbers really matter.
Below are nine key risk factors that you can expect to see in any business appraisal.
Hiring a sell-side advisor is a wise move if you want the very best possible outcome when selling your business.
Here are some issues you may face when it’s time to sell your company. Prepare yourself and don’t make these mistakes!
Building a business is hard work, but achieving your goals makes it all worthwhile.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.
Mattie O’Reilly shares the how and when to buy a restaurant, what to invest, and the right time to sell at a profit.

Emotional Aspects

When it comes to selling your business, it's important to play the field.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.
Getting the deal done is one thing — living with your new partners (or boss!) is another. In this article we talk about the first 90 days post deal and what you can learn from an entrepreneur who is now on the buy side.
The emotional aspects of exiting your business are sometimes underplayed. Laura Coe sold Litholink and learned how tough it can be.
Transitioning out of your business is difficult. Decide now what kind of life you want next.
Here are some issues you may face when it’s time to sell your company. Prepare yourself and don’t make these mistakes!
Charles Smith outlines why it’s important to start the exit with the end, rather than the other way around!
Owners who are reluctant to address succession planning may become the unwitting obstacle to the preservation and future growth of the business they worked so hard to create.
ESOPs can be a nice exit strategy for some small business owners, but they are not perfect for every situation.
Learn what matters, sometimes more than the numbers, when it comes to M&A deals.
How to prevent seller’s remorse and leave your business feeling positive about the process.
Michael Dash shares the lessons he learned from spending six years and a million dollars fighting with his business partner.
In this podcast, Laura Rich discusses the emotional impact selling your business has and some tactics to lessen its effects.

Family issue

John Garuti talks about the two-year sale of his family business and what happens during negotiations and after closing.
These 5 tips for succession planning will save you many headaches as you look to exit your business.
Owners who are reluctant to address succession planning may become the unwitting obstacle to the preservation and future growth of the business they worked so hard to create.
Succession planning is for companies of every size, so have you thought about doing it for your business yet?
Before you hand your business over to the next generation, keep these 8 things in mind as you transition your company.
You’ve trained good people to do good work — let them take over your business when it’s time to retire. This is how.
A trust advisory committee provides ongoing support, guidance and education for trustees and beneficiaries.
Learn about buy-sell agreements and why they are an integral part of exit planning.
The odds are against high net worth families to properly transfer wealth between generations. Here are four ways to preserve family wealth.
In this podcast with Carrie Hall and James Bly, we explore the 30-13-3 rule of succession planning and the best ways to ensure a successful transition.
In this podcast, Wayne Rivers shares his years of experience in the family business industry. Learn how to work together as a family, in business, for maximum success.
A family office may be the solution you’ve been looking for in your wealth management strategy. Richard Wilson’s interview elaborates.

Preparation

Embracing exit planning in M&A transactions can substantially boost a business's value by shifting focus from income generation to value acceleration, closing the Wealth Gap and Value Gap, and assembling a strong advisory team for a successful transition.
The article underscores the symbiotic relationship between Financial Advisors and M&A Advisors, emphasizing the importance of harmonizing business, personal, and financial objectives for successful business transitions. Effective communication, role clarity, and a comprehensive approach are key in navigating the complexities of such transactions. Business owners benefit most when these professionals collaboratively address both immediate transactional needs and long-term financial goals.
Effective exit planning is essential for a successful business transition. Without proper preparation and expert guidance, sellers may face valuation disputes, unmet financial goals, and protracted negotiations. Involving a diverse team of experts ensures a holistic approach, maximizing potential outcomes and minimizing unforeseen challenges.
A business owner that is contemplating the sale of his business could greatly benefit from rigorous buyer feedback two of three years prior to actually beginning the business sale process.
Great advisory boards bring innovation and opportunity, but can they increase the overall value of your organization?
This article explains how to negate the due diligence grind that can potentially decrease your sale price.
Companies need a roadmap to help them achieve measurable financial value creation. This article provides the various levers that company owners can focus on to amplify value in their business.
There are a ton of different ways you can make considerations for your management team when it comes to private equity buyouts. Watch out for conflicts of interest and provide the right incentives for success.
Don’t wait for the New Year. Be proactive about your future and start your exit plan today, with these three simple steps.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.
Thinking of selling your business? A helpful guide to figuring out if you are ready to sell and what you can look forward to after.
We’re witnessing a global economic shut down that has never been experienced in human history. Business owners will unfortunately suffer but past recessions can provide guidance on how to survive.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.
Below are nine key risk factors that you can expect to see in any business appraisal.

Reason to sell

When you sell your business, you need to know what the net proceeds will be. The purchase price is fine, but the net proceeds is ultimately what you need to know. In this article, we discuss how to compute these net proceeds.
This article is an excerpt from Equicapita’s “Little Book of What Next?”
Thinking of selling your business? A helpful guide to figuring out if you are ready to sell and what you can look forward to after.
We’re witnessing a global economic shut down that has never been experienced in human history. Business owners will unfortunately suffer but past recessions can provide guidance on how to survive.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.
Here are some issues you may face when it’s time to sell your company. Prepare yourself and don’t make these mistakes!
Charles Smith outlines why it’s important to start the exit with the end, rather than the other way around!
Before you hand your business over to the next generation, keep these 8 things in mind as you transition your company.
Learn what matters, sometimes more than the numbers, when it comes to M&A deals.
Five practical tools to get your business on the road to succession planning.
It may seem counterintuitive, but sometimes buying back the business you sold is the best decision you’ll make.
Software sales are time sensitive. The best time to sell your company is when your largest competitors are moving in the market. Here’s why:
Marcelo De Fuentes offers his insights gained from achieving financial freedom though the businesses he built from the ground up.

Buyer Types

When it comes to selling your business, it's important to play the field.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.
Here are the key elements you should consider before you decide whether to sell to a strategic buyer or private equity.
Read the Full Article
By: Jack Kearney | Managing Director
A business owner that is contemplating the sale of his business could greatly benefit from rigorous buyer feedback two of three years prior to actually beginning the business sale process.
Sellers tend to have no idea how a buyer has financed an acquisition, but a closer look inside can show a business owner what it takes to complete a deal.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.
As the market becomes more favorable for business owners to sell, we look at three different routes for owners to sell their business.
To maximize price, you need to know what the investor is really looking for. Requirements vary widely from investor to investor, so learn to ask the right questions and what numbers really matter.
A seller who is looking for capital and expertise to continue growing the business may want to consider being part of a roll-up.
With supposedly so many buyers and sellers of businesses, why is it still so hard to close a deal? Here are the 5 misconceptions that create this gap between them.
As business owners, you need to consider the types of buyers that are in the market, how those buyers perceive value and the advantages and disadvantages associated with each.
An inside look at the two main types of platform acquisitions and how you can use them to help your business.
When and why you should do a MBO, and what the financing can look like.
Succession planning is for companies of every size, so have you thought about doing it for your business yet?

Capital Structure

In the business world, mergers and acquisitions (M&A) are typically seen as financial transactions, but they have a deeply personal impact on business owners. When considering an exit strategy, owners grapple with questions about their legacy, life outside the business, and their identity.
Sellers tend to have no idea how a buyer has financed an acquisition, but a closer look inside can show a business owner what it takes to complete a deal.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.
We must fully invest in the growth and development of our human capital by providing education and training to our teams at all levels to teach how to become farmers inside our companies and in their own lives.
Learn what you can do if you lose your biggest client and your business’ sustainability is threatened.
Many small software companies selling to large enterprises often toil for years trying to scale and reach a critical mass. They have great products and are passionate about their mission, but they struggle to break the code of the legacy technology buyer.
Learn what to watch out for when using venture capital and how it stacks up to other forms of funding, both traditional and inventive.
Opportunity zone investments can be worth a look if you’re facing capital gains and have the ability to invest.
Learn how Michael Kaplan scaled his business from $300k to 18 million, despite not having everything lined up.
Figuring out how to put your charitable actions to work for you has never been easier than Luther Ranheim’s solution of a donor-advised fund to offset taxes at time of sale.
Earnouts are hardly perfect, but they can be useful if they’re understood by all parties.
Matt Boettner walks us through the financing options he used to structure the deal, what other options were out there and why he didn’t go down those roads.
Understanding options related to business real estate will help maximize value and achieve the goals desired in a transaction.

Earnouts

“The devil is in the detail, in terms of how an earnout gets written.”
Earnouts are hardly perfect, but they can be useful if they’re understood by all parties.
Business owners: Don’t limit your options. Here’s how to plan and evaluate the best option for you.
Learn about the advantages and disadvantages of this structuring tool used primarily to bridge a valuation gap.
Earnouts are underused and misunderstood, but this is simply because they aren’t appropriate in all circumstances.
The customer is always right applies not just to restaurants, but also to digital services businesses.
Often the biggest decision an IT entrepreneur has to make is figuring out if I can grow and scale this business myself, or if it is time to sell to a strategic acquirer.
Earnouts are difficult legal clauses to manage and can often lead to misunderstanding and difficulty realizing them. Here is a practical example of some of the pitfalls that sellers should watch for.
Here are the final five of 11 reasons earnouts should be considered when selling your technology (or other) company.
Here are the first six of 11 reasons earnouts should be considered when selling your technology (or other) company.
If you are a B2B company, it’s important to get multiple buyers involved and to get at least one of them to acknowledge the strategic value.
This is part three of a three-part series that identifies the natural advantages that business buyers bring to the table before the transaction process even starts.

Employee Agreements

The customer experience is a vital part of the success of your business, so figuring out how to engage your employees to work the business like you would is important.
These 5 tips for succession planning will save you many headaches as you look to exit your business.
You’ve trained good people to do good work — let them take over your business when it’s time to retire. This is how.
A stable, skilled, quality workforce is one of the top value drivers that contributes to the purchase price of a business.
ESOPs can be a nice exit strategy for some small business owners, but they are not perfect for every situation.
ESOPs are an underutilized tool in the M&A market. However, they not only get you fair market value for your business, but they also help you protect your legacy.
NDAs aren’t bulletproof vests. Here are 5 questions you wish you’d asked before you signed!
In this podcast with Carrie Hall and James Bly, we explore the 30-13-3 rule of succession planning and the best ways to ensure a successful transition.
If you’re preparing to sell your business, you’ll want to spend the next 180 days updating contracts, financial reporting and human resources.
In this podcast, Mike Paton explains the 6 key components that make up the Entrepreneurial Operating System and how to implement EOS in your business.
It’s important to incorporate incentives to harness your deal team’s commitment to the successful sale of your business while minimizing uncertainties during this transitional period.

Investment Bankers

A recently published Fairfield University whitepaper is the first comprehensive study quantifying the value of the services provided by an investment bank during the sales process, as determined by a survey of business owners who sold their business during the last five years.
There are many ways to sell a business, but only one will be the best for you. Consider these three options and figure out which one will get you the top dollar you deserve.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.
Building a business is hard work, but achieving your goals makes it all worthwhile.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.
A business owner should consider the five key factors in their search in selecting the right investment banker for the sale process.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.
How to differentiate between the types of firms and which is best for selling your business.
A financial buyer can entice sellers and intermediaries (to some level) with an approach that creates focused scale and operationally driven opportunities.
Using fair market value to help business owners bridge the gap between the valuation they feel they deserve and that which they’re likely to receive increases the likelihood of a transaction.
Preparing for and mitigating risks during the M&A process from both the buy-side and sell-side.
Investment bankers are often portrayed as villains, when really we are value maximizers.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.
Attaining a designation can be a key strategy for getting ahead in the M&A industry.
Learn the key factors in figuring out what you should do to prepare your business for a sale and where to turn for help.
Jeff Smith, serial entrepreneur, shares his reasoning for investing in a multitude of industries – including ones he has no experience in – and how to be successful in them.

Letter of Intent

In the M&A world, there are few terms as dreaded as the “Re-Trade”.  Learn how to avoid them.
There are many different styles of drafting letters of intent, which vary from law firm to law firm and from business lawyer to business lawyer. These styles usually fall into one of three categories: binding, non-binding, and hybrids.
A primer for business owners on terminology commonly included in a letter of intent.
Here are some issues you may face when it’s time to sell your company. Prepare yourself and don’t make these mistakes!
In a business purchase letter of intent, just like in an apartment lease, the party producing the document will attempt to stack the deck in their favor.
Missing deadlines as either buyer or seller has consequences on the deal.
Why holding off on signing a letter of intent can be advantageous in a sales process.
NDAs aren’t bulletproof vests. Here are 5 questions you wish you’d asked before you signed!
Every deal has its own unique challenges, but just about every successful deal has three key elements in common.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.
Clarifying the letter of intent in the beginning can help you avoid killing a deal in the end.
Here are 14 things to consider before signing an LOI or getting into bed with a buyer.
A letter of intent is a key document that an entrepreneur must obtain prior to selling a company. Learn what information is included in this document and why it is important to get one.

Negotiation

In the business world, mergers and acquisitions (M&A) are typically seen as financial transactions, but they have a deeply personal impact on business owners. When considering an exit strategy, owners grapple with questions about their legacy, life outside the business, and their identity.
In the M&A world, there are few terms as dreaded as the “Re-Trade”.  Learn how to avoid them.
When it comes to selling your business, it's important to play the field.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.
This article explains how to negate the due diligence grind that can potentially decrease your sale price.
There are a ton of different ways you can make considerations for your management team when it comes to private equity buyouts. Watch out for conflicts of interest and provide the right incentives for success.
There are many different styles of drafting letters of intent, which vary from law firm to law firm and from business lawyer to business lawyer. These styles usually fall into one of three categories: binding, non-binding, and hybrids.
Looking at your potential buyer list, comprised of other businesses, investment firms and individuals that could be approached during your sale process, you will quickly see there are significant pros and cons to both a narrow and a broad sale process.
A primer for business owners on terminology commonly included in a letter of intent.
“The devil is in the detail, in terms of how an earnout gets written.”
Hiring a sell-side advisor is a wise move if you want the very best possible outcome when selling your business.
The key to a successful deal is to prepare well, come out strong and maintain momentum throughout the business sale process.
Mattie O’Reilly shares the how and when to buy a restaurant, what to invest, and the right time to sell at a profit.

Non-Compete Agreement

NDAs aren’t bulletproof vests. Here are 5 questions you wish you’d asked before you signed!
A management buy-out or buy-in can be an excellent alternative to selling your company. Here are three steps to help you evaluate if selling to your management team is right for you.

Purchase and Sale Agreement

There are many ways to sell a business, but only one will be the best for you. Consider these three options and figure out which one will get you the top dollar you deserve.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.
A primer for business owners on terminology commonly included in a letter of intent.
“The devil is in the detail, in terms of how an earnout gets written.”
When and where a shotgun clause works and what to do when everything goes wrong and forces you to use it.
Hear a real-life example of a profitable business sale, alsongside the key takeaways for the next venture.
Being open about your business practices and financial statements can lead to a better takeaway for both the buyer and seller.
The right growth plan can help you grow any business, even those you find from unusual sources.
Missing deadlines as either buyer or seller has consequences on the deal.
Figuring out how to create distance between yourself and your business improves your inevitable transition from it and will drive a higher valuation.
Figuring out when and how to use your reps and warranty insurance will save you money when it comes time to sell.
How to prevent seller’s remorse and leave your business feeling positive about the process.
Preparing for and mitigating risks during the M&A process from both the buy-side and sell-side.

Stock Options

Use this handy list of pitfalls and ways to avoid them to prepare yourself for the M&A process.
Ever wonder what the process looks like when you turn your business into an IPO? Did you ever think this could be the perfect exit for you when you’re ready for the next step? Cathy Demers tells you her journey and shares the wisdom she derived from it.
The most important question that business owners need to answer is who is going to own their business in a few years. Based on their answer, certain planning steps should be engaged.

Types of Consideration

Understanding how customers will perceive news of your acquisition will improve the transition. Learn about the need for planning and the costs to manage customer perceptions.
We’re witnessing a global economic shut down that has never been experienced in human history. Business owners will unfortunately suffer but past recessions can provide guidance on how to survive.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.
Eventually you are going to have to exit your business. How do you want to do that? Why delay planning? Here are the top excuses owners use to avoid essential exit planning.
Read the Full Article
By: Mark Tepper | President/Founder/Wealth Advisor
Below are nine key risk factors that you can expect to see in any business appraisal.
When and why you should do a MBO, and what the financing can look like.
Earnouts are hardly perfect, but they can be useful if they’re understood by all parties.
Matt Boettner walks us through the financing options he used to structure the deal, what other options were out there and why he didn’t go down those roads.
Hear a real-life example of a profitable business sale, alsongside the key takeaways for the next venture.
How to prevent seller’s remorse and leave your business feeling positive about the process.
Valuations may be massaged, but you’ll rarely have a company pay you today for what your company might be worth in five years. Convertible bonds can help you bridge that gap.
Be sure to take the following steps before deciding to sell your business.
Valuation is an iterative process — you have to cycle through variables like markets, competition, management and assets multiple times before you can build a reliable financial forecast and discount it back to today.

Vendor Take Backs

Sellers tend to have no idea how a buyer has financed an acquisition, but a closer look inside can show a business owner what it takes to complete a deal.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.
Business owners: Don’t limit your options. Here’s how to plan and evaluate the best option for you.
Learn about the advantages and disadvantages of this structuring tool used primarily to bridge a valuation gap.
In this podcast, Mike Paton explains the 6 key components that make up the Entrepreneurial Operating System and how to implement EOS in your business.
A mid-market business sale is usually comprised of cash and some sort of deferred payment such as a seller’s note or earnout. We asked our readership to share their experience on acceptable levels of deferred payments.
Learn about the risks associated with vendor financing for a seller.

Discounted Cash Flows

Valuation is an iterative process — you have to cycle through variables like markets, competition, management and assets multiple times before you can build a reliable financial forecast and discount it back to today.
Just because banks, shareholders and government agencies never ask what your business is worth doesn’t mean you don’t need to know.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.
Learn why more traditional valuation methods may not be the best for your IT company.
Grasping the basics of technical valuation can go a long way toward helping business owners increase the valuation of their business.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.
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.
This article will help you understand the best way to value your business so you can better plan for succession.
Buyers will use every tool to lower the valuation of a company for sale, so sellers should be aware of the following calculation options in order to be prepared to defend their price.
It is essential for companies to take pre-deal steps such as developing detailed plans, focusing on future value and looking closely at synergies in an attempt to unlock the highest value from their business.

EBITDA

In the business world, mergers and acquisitions (M&A) are typically seen as financial transactions, but they have a deeply personal impact on business owners. When considering an exit strategy, owners grapple with questions about their legacy, life outside the business, and their identity.
In the M&A world, there are few terms as dreaded as the “Re-Trade”.  Learn how to avoid them.
This article is an excerpt from Equicapita’s “Little Book of What Next?”
There are lots of acronyms to know in the world of divestments. EBITDA is one of the most important. Here’s what you need to know.
The most common EBITDA adjustments you need to know when it comes time to sell your business.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.
For those involved in M&A, EBITDA (earnings before interest, taxes, depreciation and amortization) is the often-referenced, industry standard metric that plays a major role in how companies are traditionally valued. For those considering a sale of their business — the rule is that when you maximize EBITDA, you can maximize valuation.
Learn what makes up a good valuation and start the process before it’s too late.
“The devil is in the detail, in terms of how an earnout gets written.”
Here are some common errors business owners make when considering EBITDA as a valuation method.
Take control of your financial statement by learning how accounting policies can positively impact EBITDA.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.
Getting a strategic valuation done might work better for your company than a traditional EBITDA multiple.
The Due Diligence Grind is often practiced by sophisticated acquirers to reduce the purchase price of a business by citing negative findings during due diligence.

Enterprise Value

In the M&A world, there are few terms as dreaded as the “Re-Trade”.  Learn how to avoid them.
Companies need a roadmap to help them achieve measurable financial value creation. This article provides the various levers that company owners can focus on to amplify value in their business.
When building enterprise value for your business, a good strategic plan is critical.
A recently published Fairfield University whitepaper is the first comprehensive study quantifying the value of the services provided by an investment bank during the sales process, as determined by a survey of business owners who sold their business during the last five years.
The flows in our 500-year-old double-entry accounting system for recognizing the value of intangible assets are at the heart of a current and pervasive debate in the accounting and finance professions.
Whether you’re thinking of moving your company to another state, or abroad, or working abroad as an individual, learn the dos and don’ts of U.S., International and interstate tax before you do.
A seller who is looking for capital and expertise to continue growing the business may want to consider being part of a roll-up.
Many small software companies selling to large enterprises often toil for years trying to scale and reach a critical mass. They have great products and are passionate about their mission, but they struggle to break the code of the legacy technology buyer.
Charles Smith outlines why it’s important to start the exit with the end, rather than the other way around!
Attract a high multiple for your private company by learning how the sales process impacts a company valuation.
Learn what matters, sometimes more than the numbers, when it comes to M&A deals.
How to prevent seller’s remorse and leave your business feeling positive about the process.

Free Cash Flows

This article is an excerpt from Equicapita’s “Little Book of What Next?”
Understanding what value drivers are so you can improve them and, therefore, your valuation.
You can be the driver of value for your own business by starting with an assessment of how it stacks up against these valuation parameters.
Partnering with a private equity firm is a bit like getting married. Here is some advice on how to choose ‘the one.’
Mike O’Neil shares his industry experience working in private equity to dispell any misconceptions about what a PE recapitalization will do for you.
Great rap insights on increasing your valuation and successfully selling your business.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.
Valuation is an iterative process — you have to cycle through variables like markets, competition, management and assets multiple times before you can build a reliable financial forecast and discount it back to today.
The right way to recast EBITDA so your business gets the right valuation when it goes to market.
Recurring revenue is a vital part of many business’ success, particularly in today’s heavily tech-dependent market. Loren Horsager explains how it can triple your company’s value as well as secure a better cash flow.
Recurring revenue is the holy grail for business owners looking to have a valuable and sellable company. Learn how to secure stable and predictable cash flow in your business.
Grasping the basics of technical valuation can go a long way toward helping business owners increase the valuation of their business.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.
Inform yourself on what you can reasonably expect a payback period to be for your small- or medium-sized business.

Goodwill

Companies need a roadmap to help them achieve measurable financial value creation. This article provides the various levers that company owners can focus on to amplify value in their business.
Avoid overestimating the value of your business’s goodwill to keep sales expectations realistic.
Identifying and articulating the goodwill in your business can have a significant impact on value.
The customer experience is a vital part of the success of your business, so figuring out how to engage your employees to work the business like you would is important.
Figuring out how much your reputation impacts your business’ value will allow you to make positive corrections now for better valuation later.
Talking up your business is a good thing, right? Only if you’re telling the truth.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.
A strong and cash-positive business is possible in any industry, even charitable ones. Learn how Erin Weed started and ran Girls Fight Back and how she created a profitable business while helping others.
Intangibles make up 80% of the value of the average business. Understanding these intangibles helps create a map of how different parts of your organization can and should work together.
Business owner sometimes have lofty expectations on the value of their companies. Here are reasons why these expectations might not be achievable.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.
In this podcast, Mike Paton explains the 6 key components that make up the Entrepreneurial Operating System and how to implement EOS in your business.
If you could purposely – not accidentally, but purposely – create the culture that had the highest probability of causing your people to perform at the highest levels, wouldn’t it make total sense to do that?
A framework for increasing the value of any business by transforming it into a thriving, turn-key operation.

Multiple

Determining the value of your business is the starting point to building value. Here’s how to set up a simple valuation template in excel.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.
Here are some common errors business owners make when considering EBITDA as a valuation method.
The Due Diligence Grind is often practiced by sophisticated acquirers to reduce the purchase price of a business by citing negative findings during due diligence.
Valuing a company is more black magic than science. These tricks will help you get the highest possible price.
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By: John Carvalho | President, Divestopedia Inc.
Here are some answers to the key question about what multiple a business sold for (and when).
Here are some answers to the key question about what multiple a business sold for (and when).
Learn why more traditional valuation methods may not be the best for your IT company.
Grasping the basics of technical valuation can go a long way toward helping business owners increase the valuation of their business.
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By: John Carvalho | President, Divestopedia Inc.
Acquisition as a growth strategy is an option that should be considered by mid-market business owners. In this podcast, John Bly provides his insights on how to grow by acquisition.
Understanding the data analyzed here for supply chain business owners will help determine the best valuation for your business.
This aggressive strategy isn’t for every business, but it can drive valuation premiums for those companies that deliver superior financial results in their industry.
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By: John Carvalho | President, Divestopedia Inc.
This aggressive strategy isn’t for every business, but it can drive valuation premiums for those companies that deliver superior financial results in their industry.
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By: John Carvalho | President, Divestopedia Inc.

Net Assets

Whether you’re thinking of moving your company to another state, or abroad, or working abroad as an individual, learn the dos and don’ts of U.S., International and interstate tax before you do.
By evaluating your business’ assets, you can rest assured that their sale will be fair. Whether you choose to hire a professional or appraise your company’s possessions on your own, consider the use value, condition and fair market value.
Valuation is an iterative process — you have to cycle through variables like markets, competition, management and assets multiple times before you can build a reliable financial forecast and discount it back to today.
Business owners should consider the following aspects of their balance sheet when deciding to sell.
Taking a hard look at your balance sheet will help identify potential red flags that could send a buyer running the other way.
In this podcast, Lisa Gray, founder of Graymatter Strategies LLC, explores how family businesses can prepare emotionally and financially for the transition from earning money in their business to having liquid wealth.
Drilling down to the nuts and bolts of financial management analysis offers significant insight on driving business value.

Tangible Assets

A trust advisory committee provides ongoing support, guidance and education for trustees and beneficiaries.
By evaluating your business’ assets, you can rest assured that their sale will be fair. Whether you choose to hire a professional or appraise your company’s possessions on your own, consider the use value, condition and fair market value.
You may not be ready to sell, but you want to know what position your business has in the market. Here are some key valuations for you to use.
Get the best valuation for your business before entering the market with these simple tips.
Value creation is the strategy business owners put in place to get to the valuation result that satisfies their wants and needs.
Taking a hard look at your balance sheet will help identify potential red flags that could send a buyer running the other way.
Drilling down to the nuts and bolts of financial management analysis offers significant insight on driving business value.
Michael Carter, CEO and president of BizEquity, talks about their simple and affordable online tool to value a lower mid-market business.

Valuation Methods

This article explains how to negate the due diligence grind that can potentially decrease your sale price.
There are lots of acronyms to know in the world of divestments. EBITDA is one of the most important. Here’s what you need to know.
A recently published Fairfield University whitepaper is the first comprehensive study quantifying the value of the services provided by an investment bank during the sales process, as determined by a survey of business owners who sold their business during the last five years.
The flows in our 500-year-old double-entry accounting system for recognizing the value of intangible assets are at the heart of a current and pervasive debate in the accounting and finance professions.
Determining the value of your business is the starting point to building value. Here’s how to set up a simple valuation template in excel.
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By: John Carvalho | President, Divestopedia Inc.
Learn what makes up a good valuation and start the process before it’s too late.
Whether you’re thinking of moving your company to another state, or abroad, or working abroad as an individual, learn the dos and don’ts of U.S., International and interstate tax before you do.
Below are nine key risk factors that you can expect to see in any business appraisal.
The Due Diligence Grind is often practiced by sophisticated acquirers to reduce the purchase price of a business by citing negative findings during due diligence.
You can be the driver of value for your own business by starting with an assessment of how it stacks up against these valuation parameters.
Being open about your business practices and financial statements can lead to a better takeaway for both the buyer and seller.
The type of buyer and method of sale are two important (yet often overlooked) value determinants when finding a starting price for your business.

Working Capital

This article is an excerpt from Equicapita’s “Little Book of What Next?”
Sellers tend to have no idea how a buyer has financed an acquisition, but a closer look inside can show a business owner what it takes to complete a deal.
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By: John Carvalho | President, Divestopedia Inc.
We must fully invest in the growth and development of our human capital by providing education and training to our teams at all levels to teach how to become farmers inside our companies and in their own lives.
Determining the value of your business is the starting point to building value. Here’s how to set up a simple valuation template in excel.
Read the Full Article
By: John Carvalho | President, Divestopedia Inc.
The Due Diligence Grind is often practiced by sophisticated acquirers to reduce the purchase price of a business by citing negative findings during due diligence.
An insider look at how cost segregation can free up working capital for you today.
Working capital can be the biggest chip at the table during your negotiations. Here is everything you need to know to calculate working capital before you enter the sale process.
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By: John Carvalho | President, Divestopedia Inc.
Working capital management is just as important as revenue growth and profitability when creating value in your company as you prepare to sell it.
This article will help you understand the best way to value your business so you can better plan for succession.
Business owners should be spending time on activities that can add the greatest value to their businesses. Rob Slee, renown value creation expert, breaks down key areas to focus on.
The most important question that business owners need to answer is who is going to own their business in a few years. Based on their answer, certain planning steps should be engaged.
Drilling down to the nuts and bolts of financial management analysis offers significant insight on driving business value.
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