SELLING PRIVATELY HELD BUSINESSES


–SINCE 1982–

Articles & News

[Podcast] Rob Amerine Talks Business Transactions & Selling Strategy on KRDO

Rob Amerine is guest speaker on KRDO’s, The Extra with Andrew Rodgers The FBB Group’s, Senior Broker, Rob Amerine was guest speaker on KRDO’s podcast, The Extra with Andrew Rodgers on Friday, September 17, 2021. The biggest misconception is thinking you can sell a business tomorrow, the reality is preparation for a successful sale can take 3-5 years. Rob talks about how to position your business for a successful sale, the recovery of businesses and the current market. Listen below to hear about the importance of successful small business transitions, the pros/cons of starting vs buying a business as well as

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Professional Services in Business Transactions

We are often asked by both Buyers and Sellers if they will need an attorney or accountant in a business sale or if my firm, providing intermediary services will handle all of the documentation.  The answer is that business transfers are complex and require the use of multi-professional disciplines.  Additionally, there is the issue of conflicts of interest.  In this month’s article, I will address the roles of some of the professionals that we often see in a transaction. ACCOUNTANTS For Sellers, the accountant will play a key role in preparing the business to go to market.  It is essential

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Management Buyouts

Selling a business to one or more employees can result in complex and emotionally taxing negotiations. (For the purposes of this article, I will assume that we are dealing with a single employee, as dealing with multiple employees make it even more complex.)  On one hand, the business owner may have a desire to transfer the business to a team member that has a thorough knowledge of the business operations, which makes the transition more streamlined.  On the other hand, the employee may feel entitled to a significant discount in value as the employee believes that he or she was

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The Big Exit?

Many of my experienced peers in the M &A Advisory industry remember a book that was published in 2005, “The $10 Trillion Opportunity”, authored by Richard E. Jackim and Peter G. Christman.  In summary, the book highlighted the opportunities in the business exit profession, as aging Baby Boomers with privately held businesses were aging out and starting to exit their businesses.  Part of the concept was that this was the beginning of the tidal wave and there would be more businesses than buyers in the market. Well, like many predictions, the tidal wave never fully materialized, due in part to

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Timing Your Business Acquisition in 2021

There is an old saying that “timing is everything“. That is especially true in the investment world. Be it the stock market or buying a business, timing can be critical to the rate of return on investment or even the survival of the investment. Although there are many people far more qualified than me to address the timing in the stock market, I will address the timing of business acquisitions in the current market. Business Acquisitions in the Current Market In addition to what my team is experiencing at the FBB Group, conversations that I have with business intermediaries across

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The Current Status of the Business Transfer Market in Colorado

Not all markets are created equal. In Colorado we are fortunate that we reside in a state with a dynamic economy and a high quality of life. Consequently, for better or worse, we have significant in-migration which is helping to fuel strong job and housing markets. To a certain extent, this is a variation of the old “did the chicken or the egg come first” question. Are companies relocating and expanding in Colorado because of a growing workforce or are people relocating to Colorado because of the strong job market? In any event, the labor market is a significant factor

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Proposed Tax Increases That Can Impact the Sale of a Business

Recently the Biden administration has proposed numerous tax increases to pay for its infrastructure plan.  Two of these changes, an increase in the Federal Capital Gains Tax, and changes to the Estate Tax can have significant tax implications to entrepreneurs.  We will address both proposed changes below. Capital Gains Taxes For capital gains taxes to apply, an asset needs to be owned by the taxpayer for a year or longer.  The gain is calculated by taking the sales price, less appropriate expenses of sale, and subtracting the taxpayer’s basis.  (Note: This calculation can be more difficult than it seems, and

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Why 2021 is a Good Time to Sell a Business and Why 2021 is a Good Time to Buy a Business

Although the title to this month’s article may seem contradictory, I believe that the title is accurate.  On the sell side of the equation, we have several factors: It is a Seller’s Market as there are fewer business available to purchase.  Many businesses did not survive the COVID-19 shutdowns, and even more were financially wounded and will not go to market until they are healed.  There are more confident, financially qualified buyers than businesses and the factors of supply and demand come into play. Money is cheap and available, which permits buyers to pay more and acquire larger businesses due

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What a Difference a Year and Several Trillions of Stimulus Dollars Make!

When you are reading this article, on or about March 9th, it will be approximately 51 weeks since most of the country shut down in an effort to control the spread of COVID-19.  At that time, the majority of the population and financial markets were gripped in fear, due to the unknown impacts of the virus.  At the time of the shutdown, my firm had several transactions in process.  Not surprisingly, all of them imploded as buyers did not want to buy a business that was shut down and lenders did not want to loan money to purchase a business

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Buyer Acquisition Incentives For 2021

Buyer Acquisition Incentives Although December 2020 was a strong month for business transaction closings for The FBB Group, I believe that most of us are glad to see 2020 in our rear view mirror and are looking forward to a “Back to Normal 2021”. For the business transfer industry and sellers considering a sale in 2021, Santa delivered a late but significant gift when the President signed the Consolidated Appropriations Act of 2021. This legislation included significant incentives to purchase a business with SBA funding, which can apply to loans up to $5,000,000 for a business acquisition and even larger

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