Author: exitoasis

Video: WE SOLD THE BUSINESS!!

Note: There’s the how-to, the financial considerations, and the impact on the owner, but there’s more to it.  Interesting to see how this teen reacts to the sale of his Dad’s business.  Obvious pride.  A unique reminder that family gets impacted by the sale.  

Determining Your Company’s Value: Multiples and Rules of Thumb

Note:  Last year’s multiple average was around 2.5.  This article is as straight-forward as we’ve seen.  Most articles you’ll see about business multiples are way out of whack. The meeting continued to hum along nicely as the seller recounted the history of his company and listed its biggest customers and possible buyer candidates.

What Is Seller’s Discretionary Earnings?

Note:  A very solid effort at defining Seller’s Discretionary Earnings — probably the single most important thing to understand for most business owners. What is Discretionary Cash Flow? A seller’s discretionary earnings are the pretax and pre-interest profits before non-cash expenses, one owner’s benefits, one time investments, and any non-related income or expenses.

Why Businesses Do Not Sell

Note:  A solid article highlighting some of the key issues business owners need to address before a sale. It would be nice to live in a world where every business-for-sale was sold at top dollar. While there is no such thing as a perfect business free from all defects, there are a number of problems that can hinder a sale that could be remedied, if given enough time.