Key Reasons Why a Buyer Will Pay a Premium for Your Business

Most successful middle-market business owners are optimistic and confident in nature. While these traits are important to growing an enterprise, they often cause an owner to have a false sense of security regarding the value of their business. In my thirty years of advising business owners on the sale of their business, most owners incorrectly believe their businesses are worth more than the market will bear. This misconception frequently keeps the owner from even considering important changes to the business that will support a higher valuation at the time of a sale.

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Company and External Factors Influencing Business Valuation

As a mergers and acquisitions intermediary, one of the most contentious discussion topics I encounter when meeting with a prospective business seller relates to business valuation. Most potential sellers have a preconceived notion of what their businesses are worth rather than knowledge based on specific value drivers to support a realistic assessment of value.

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How a Private Equity Recapitalization Transaction Can Eliminate a Business Owner’s Wealth Concentration Risk

Times have changed. Owners are operating their business in a volatile world. Competitive threats, financial and geopolitical events can quickly and significantly decrease their company’s operating cash flow and valuation. Because of their age, baby boomers have less time to recover from such events.

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The Leading Causes of Seller's Remorse in a Business Sale Transaction

Seller's remorse is a common emotional reaction that can occur prior to or after the sale of a business. It is a frequent reason transactions fail to close and can cause significant seller anxiety post-closing. After decades of hard work, many business owners find selling and walking away from their business to be a difficult and emotionally charged decision regardless of the monetary consideration received. This article presents the leading causes of seller's remorse and what a business owner can do to deal with them.

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