Valuation

The valuation of a company is a subjective excercise that depends on numerous factors. Potential buyers will try to beat down your valuation every chance they get. This section will arm you with the tools needed to defend your valuation when it's time to sell.



7 Reasons Your Business Isn't Worth What You Think It's Worth 7 Reasons Your Business Isn't Worth What You Think It's Worth 7 Reasons Your Business Isn't Worth What You Think It's Worth 7 Reasons Your Business Isn't Worth What You Think It's Worth


Business owner sometimes have lofty expectations on the value of their companies. Here are reasons why these expectations might not be...

Forget About Business Value. What Are My Net Cash Proceeds?! Forget About Business Value. What Are My Net Cash Proceeds?! Forget About Business Value. What Are My Net Cash Proceeds?! Forget About Business Value. What Are My Net Cash Proceeds?!


Understanding the value of your business is important, but even more important is determining the amount of cash that will land in your...

Deal Structures Through the Eyes of an Acquirer Deal Structures Through the Eyes of an Acquirer Deal Structures Through the Eyes of an Acquirer Deal Structures Through the Eyes of an Acquirer


In many cases, the sellers of a business (and even their intermediaries) have no idea how buyers finance an acquisition, but a closer look...

5 Types of Business Insurance That Maximize Value 5 Types of Business Insurance That Maximize Value 5 Types of Business Insurance That Maximize Value 5 Types of Business Insurance That Maximize Value


Different types of insurance for small and medium-sized businesses can not only provide you with the support you need in the event an issue...

Both Sides of the Table: The Seller Becomes a Buyer Both Sides of the Table: The Seller Becomes a Buyer Both Sides of the Table: The Seller Becomes a Buyer Both Sides of the Table: The Seller Becomes a Buyer


Learn the perspective of a buyer from an entrepreneur who has experiences both selling and buying businesses.

What Your Supply Chain Business Is Really Worth What Your Supply Chain Business Is Really Worth What Your Supply Chain Business Is Really Worth What Your Supply Chain Business Is Really Worth


Jock Purtle, owner of digitalexits.com, explains the types of valuations to consider, the average multiple that supply chain businesses are...

Why the Next 180 Days Are Significant When Preparing to Sell Your Business Why the Next 180 Days Are Significant When Preparing to Sell Your Business Why the Next 180 Days Are Significant When Preparing to Sell Your Business Why the Next 180 Days Are Significant When Preparing to Sell Your Business


When business owners are preparing to sell, the next 180 days is a critical time period to execute all significant changes that may be...

How Industry Consolidation Can Impact a Business Exit How Industry Consolidation Can Impact a Business Exit How Industry Consolidation Can Impact a Business Exit How Industry Consolidation Can Impact a Business Exit


Have you considered the stage of consolidation in your industry and how that might impact your plans for an exit?

Preparing for an Actual Increase in Purchase Price During Due Diligence Preparing for an Actual Increase in Purchase Price During Due Diligence Preparing for an Actual Increase in Purchase Price During Due Diligence Preparing for an Actual Increase in Purchase Price During Due Diligence


It's a common concern for business sellers that their price will be knocked down as a result of what's discovered during the due diligence...

Comparing Comparables: The Problem with Transactional Data Comparing Comparables: The Problem with Transactional Data Comparing Comparables: The Problem with Transactional Data Comparing Comparables: The Problem with Transactional Data


George Abraham of Business Evaluation Systems explains the Direct Market Data Method and the issues facing transactional data from the top...

A Calculation of Value Report and an Appraisal...There is a Difference A Calculation of Value Report and an Appraisal...There is a Difference A Calculation of Value Report and an Appraisal...There is a Difference A Calculation of Value Report and an Appraisal...There is a Difference


George Abraham of Business Evaluation Systems explains what a calculation of value report is and how it differs from an appraisal. Knowing...

9 Financial Tips to Keep Your Business in Sale Ready Shape 9 Financial Tips to Keep Your Business in Sale Ready Shape 9 Financial Tips to Keep Your Business in Sale Ready Shape 9 Financial Tips to Keep Your Business in Sale Ready Shape


When it's time to sell your business, your numbers must tell the right story. Ensure you know your numbers inside and out by following...

How Middle Market Business Acquisitions Are Financed How Middle Market Business Acquisitions Are Financed How Middle Market Business Acquisitions Are Financed How Middle Market Business Acquisitions Are Financed


Understand the basic financing structures used in the sale and acquisition of a lower mid-market business.

Increase Your Company Debt? Why Not, It May Be an Option to Selling Increase Your Company Debt? Why Not, It May Be an Option to Selling Increase Your Company Debt? Why Not, It May Be an Option to Selling Increase Your Company Debt? Why Not, It May Be an Option to Selling


For companies with low debt on their balance sheets, leveraging back to an optimal capital structure can allow an owner to monetize the...

'Best of Breed': An Aggressive Valuation Strategy for the Best Mid-Market Businesses 'Best of Breed': An Aggressive Valuation Strategy for the Best Mid-Market Businesses 'Best of Breed': An Aggressive Valuation Strategy for the Best Mid-Market Businesses 'Best of Breed': An Aggressive Valuation Strategy for the Best Mid-Market Businesses


The best companies can't always be compared to their peers. That's where the best of breed strategy comes in. Find out how it's used in...

11 Reasons to Use Earnouts in the Sale of Your Company (Part 2) 11 Reasons to Use Earnouts in the Sale of Your Company (Part 2) 11 Reasons to Use Earnouts in the Sale of Your Company (Part 2) 11 Reasons to Use Earnouts in the Sale of Your Company (Part 2)


Dave Kauppi, M&A advisor with MidMarket Capital, Inc., gives five more reasons out of 11 why earnouts should be considered when selling...

11 Reasons to Use Earnouts in the Sale of Your Company (Part 1) 11 Reasons to Use Earnouts in the Sale of Your Company (Part 1) 11 Reasons to Use Earnouts in the Sale of Your Company (Part 1) 11 Reasons to Use Earnouts in the Sale of Your Company (Part 1)


Sellers have historically viewed earnouts with suspicion as a way for buyers to get control of their companies cheaply. However, here are...

Diversifying Without Selling Your Business Diversifying Without Selling Your Business Diversifying Without Selling Your Business Diversifying Without Selling Your Business


Business owners often have all their wealth tied up in their business. But diversifying doesn't have to involve selling - or even giving up...

For High-Tech M&A, Strategic Value is Not Automatic For High-Tech M&A, Strategic Value is Not Automatic For High-Tech M&A, Strategic Value is Not Automatic For High-Tech M&A, Strategic Value is Not Automatic


Dave Kauppi, president of MidMarket Capital, Inc., describes his recent experience in helping a health care information system company get...