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.
A seller who is looking for capital and expertise to continue growing the business may want to consider being part of a roll-up.
Earnouts are hardly perfect, but they can be useful if they're understood by all parties.
Environmental assessments are commonplace when purchasing a business. Found out when and why it's used and how you can prepare for it.
When you're selling a company, figuring out what type of buyer fits you is just as important as the final purchase price. Are you looking for a partner who can help you grow the business and exit slowly? Or perhaps you want...
There are many types of potential buyers for your business. Learn what private equity firms are and how they invest in private companies.
The enterprise value of a business always makes headlines, but this is not the actual cash the seller receives. Don't forget to subtract the debt!
Value creation. Value maximization. Value drivers. These are all catchy phrases that are overused in business. Yes, business owners need to design a road map to generate and measure intrinsic value in their business. The...
Most company owners will agree on this: landing a big order or project is fun, balance sheet management is anything but. That's why company owners often leave managing receivables and payables up to the accountants. This is...
If you've built your company over the years with blood, sweat and tears, the idea of giving up control is hard to take. It can feel like you've lost your grip on the business you built. You become less of the go-to person...
Ready to sign that letter of intent (LOI)? When you're selling your business, after all the negotiating is done, a buyer will put forward an LOI for you to sign. This is when things really get serious, so you need to be sure...
My first job out of public accounting was for a real estate developer who developed rental properties. Once he had them fully rented out, he would hold them for the free cash flow and never sell. During that time, cap rates...
I'm Canadian, and I love hockey. I don't, however, love "hockey stick" financial forecasts. You know the ones I'm talking about. A hockey stick forecast is one that shows its last few years of actual results flat and then...
Too many companies grow their revenue without knowing if they're actually earning a reasonable margin. Most literature will tell you that a growing top line is critical to a higher valuation. However, if you are growing your...
My operating partners in a previous company we built and sold used to call me "EBITDA Erick." We spent considerable time helping our operating partners understand what EBITDA was, its advantages and its limitations, so I...
I talk to a lot of company owners who have sold their business using an investment banker or business broker. I always ask them how their experience was. It seems the answers are always either extremely positive or negative....