While recurring revenue and EBITDA constitute the staples of a business’s value, there are other variables that are considered in the valuation equation. One important variable that often gets overlooked by business owners preparing for a sale is customer concentration. Before going to market, sellers are wise to understand their business’s level of concentration, and proactively work to lower concentration if levels could potentially be viewed as risky in the eyes of a buyer.
As a business owner considering an exit, one of the most important decisions you will make is hiring a business broker. Selecting the right advisor to facilitate the sale of your business requires a great deal of consideration and is pivotal to a successful exit.
Regardless of the industry trends and macro-economic market conditions, selling a business requires thoughtful preparation. Making strategic adjustments to your business before it is on the market can help increase value and set the stage for a smooth sale. Before rushing into an exit, consider preparing your business in following areas.
There has been an incredible amount of consolidation in the cloud, data center, and MSP markets in recent years, and many experts are predicting a similar pattern of consolidation to continue in the near future.
The decision to sell your most valuable asset does not happen overnight. If you’re considering the eventual sale of your business, take the time to ask yourself a few important questions. The answers may provide you with insight on whether or not you’re truly ready for an exit.
2017 is off to a strong start as demand for data storage continue to grow with evolving IT needs. In this market update, Michael Murphy, Charlie McLravy, and Jim Farrell of NEF Capital Advisors provide a guided tour of the current M&A environment, and share perspectives on what's in store for the year ahead.
Life is unpredictable, and the factors that affect your business are no different. In this article we cover proactive approaches to planning your exit strategy so you can leave on your own terms at the right time and for the right reasons.
Today’s active M&A market grants business owners the opportunity to sell their company when the time is right. But the post-sale life can leave a seller with some perplexing questions. With the right outlook and preparation, an owner can plan for the sale of their business and life “after”. Mitigating tax hits, growing assets, and establishing a sense of purpose are all feasible, attainable benchmarks for a business owner.
A successful exit event is the goal for many data center, cloud and MSP entrepreneurs, but the sales process leads to a number of important personal financial questions. That’s why Clark Griggs of Griggs Wealth Management has created a pre-sale checklist for owners that covers the keys to wealth planning.
We’re all human. Even the most buttoned-up business owner could feel a twinge when asked a tough question about their business during long negotiations. But reacting the wrong way can derail a potentially lucrative deal.