SELLING PRIVATELY HELD BUSINESSES


–SINCE 1982–

Articles & News

Starting 2019 on a Positive Note

New Year’s Resolutions to Improve Your Business The start of a new year is often a time when people think about creating new habits to improve their position in life. For owners of privately held businesses, these New Year’s Resolutions often include working on the business to improve its profitability, and value. Below are some thoughts to assist you in developing your own business resolutions to increase the value of your business in 2019: This Year I’m Going to Address Customer Concentration There seems to be some differing opinions on exactly where customer concentration begins to be a problem for

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Year-end Tax Planning

As 2018 heads to a close, many businesses that have calendar year ends are, or should be, in discussions with their tax advisors about year-end tax planning. Usually, the goal for most small business owners is to pay as little tax as possible. However, this may not always be the best route to the end goal. If you are considering selling your business within the next three years, or if your strategy is to consistently operate your business so that it is positioned for maximum transferable value, then your outlook on taxes will likely differ from other owners. Below are

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Add-On Acquisitions

Private Equity Groups (PEGS) have become some of the most active acquirers of middle-market businesses. For over twenty years, the FBB Group has been exposing and selling its client companies to PEGs. Our first transaction with a PEG was a platform with EBITDA of over five million dollars. As the PEG business model developed and more PEGs came into existence, the size of the target company decreased, due to demand, in part due to the ‘add on’ strategy discussed in this month’s featured article. About Add-On Acquisitions PEGs may look at thousands of businesses every year, so it is important

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Add-On Acquisitions

Many small business owners automatically presume that their company is not large enough or attractive enough to be acquired by a Private Equity Group (PEG). The reality is that, in the right circumstances, it could be. While many PEGs do have size requirements for acquisitions that are beyond many small businesses, there is an increasing trend for them to dip into the lower end of the market looking for add-on companies that can be added to a larger, platform company already in their portfolio. A platform company differs from an add-on company in that the platform company typically has developed

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The State of the Business Acquisition Market in Colorado

I have commented in recent eNewsletters about the strong market conditions. This month’s featured article that was penned by team member, Scott Densmore, quantifies activity on a national basis. Due to the strong Colorado economy, we are also seeing significant activity as demonstrated by the two transactions that we closed last week, and the significant pipeline of transactions in progress, including a full price, all cash, seven-figure Letter of Intent for a business that we have not actively taken to market. If you are considering selling your business, or if you are working with a client that is considering selling

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The State of the Business Acquisition Market in Colorado

I have commented in recent eNewsletters about the strong market conditions. This month’s featured article that was penned by team member, Scott Densmore, quantifies activity on a national basis. Due to the strong Colorado economy, we are also seeing significant activity as demonstrated by the two transactions that we closed last week, and the significant pipeline of transactions in progress, including a full price, all cash, seven figure Letter of Intent for a business that we have not actively taken to market. If you are considering selling your business, or if you are working with a client that is considering

Read More »

Business Buyers Frequently Asked Questions

Thinking about buying a business? More and more investors are considering the acquisition of an existing business as the best way to control their own destiny and accumulate wealth. It is estimated that over 80% of the millionaires in the United States own their own business. Below are some questions that are frequently asked by entrepreneurs considering the acquisition of a business: How Are Businesses Valued? There is no simple method and there are numerous formulas for valuing a business. Our experience has shown that there are three key components that are used in computing valuation models: Earning Power Earning

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Buyer Frequently Asked Questions

Thinking about buying a business? More and more investors are considering the acquisition of an existing business as the best way to control their own destiny and accumulate wealth. It is estimated that over 80% of the millionaires in the United States own their own business. Below are some questions that are frequently asked by entrepreneurs considering the acquisition of a business: How Are Businesses Valued? There is no simple method and there are numerous formulas for valuing a business. Our experience has shown that there are three key components that are used in computing valuation models: earning power value

Read More »

Business Sellers Frequently Asked Questions

More and more owners of small and medium-sized companies are considering the advantages of selling their businesses these days. Of the close to one million businesses that will change hands this year, most will involve privately held companies selling for $500,000 to $15,000,000. Yet, until business owners experience a merger or acquisition, few will know what to expect or how to proceed. In the lives of entrepreneurs, few events are more emotional, or significant, than selling their business. In order to maximize the value of their business, entrepreneurs should always be thinking about the possibility of selling. The smart business

Read More »

Seller Frequently Asked Questions

More and more owners of small and medium sized companies are considering the advantages of selling their businesses these days. Of the close to one million businesses that will change hands this year, most will involve privately held companies selling for $500,000 to $15,000,000. Yet, until business owners experience a merger or acquisition, few will know what to expect or how to proceed. In the lives of entrepreneurs, few events are more emotional, or significant, than selling their business. In order to maximize the value of their business, entrepreneurs should always be thinking about the possibility of selling. The smart

Read More »