Tackling some tough issues this week, we explore when you need to fire a relative from the family business, why recasting your financials is vital before you start negotiations with a buyer, why should never mention a price to a potential buyer, and more. Click on the headlines to read the full pieces.
When you’re running a family business, sometimes it’s necessary to ask a family member to leave the company in order to protect the business. Here’s how you know if it’s time to do so.
Here are a few items that can be recast in your financials, why recasting plays a critical role when selling your business, and how you can avoid undervaluing your company.
Many business owners are unaware of the benefits of selling to or partnering with a private equity firm. Here’s a case study of how a PE group added value to existing companies.
“Oftentimes we have business owners ask us at our M&A seminars: Why would anyone want to buy my company? We understand that this question is often based on 30-40 years of hard work, sweat, and toil, which can cause entrepreneurs to focus on the negatives of running a business rather than the positives that many buyers might see.
This is why it is so vital that you step back from your business and look at it objectively long before you consider approaching buyers. Quite a few business owners sell their companies short because of the fact that they see the blemishes and warts of the company and have no idea how a buyer may view it.”
He who mentions price first loses. Here’s why.
Many business owners tell us that they know exactly who will buy their companies. But if they only talk to one buyer, they’re missing out on the limited auction process.