Author: exitoasis

Rich vs. King in the Real World: Why I sold my company

Note: We love personal stories about the sale of companies.  It’s a perspective that is very hard to come by (outside of a broker’s endorsement video.)  The “Rich or King” choice might provide an interesting question when you look at how you’re running your company

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.