Reasons to Sell Your Business – Seller Situations
Selling a business is one of the most significant decisions a business owner can make. Whether motivated by personal goals, market timing, or responding to industry shifts, the decision to sell is never made lightly. While each business owner’s reasons are unique, certain common factors drive these choices and shape the path forward. Understanding these reasons and the key considerations involved can help ensure that, when the time comes, the transition is as smooth and beneficial as possible for all involved. In this post, we’ll discuss some of the top reasons that owners may decide to sell, along with critical
Risks & Rewards of Seller Financing
While interest rates are finally starting to come down, the cost of capital when it comes to acquiring a business remains relatively high (nearly double what it was in early 2022 before interest rates increased). Our firm continues to see a trend towards more seller financing options, which can be a viable path forward for owners who are looking to take advantage of the high cost of capital while maximizing the overall value of their businesses. Rather than relying solely on third-party lenders, seller financing options allow the buyer and seller to negotiate terms that are often outside of the
Choosing to Sell Your Business Before Retiring
Deciding to sell a business in preparation for retirement is a pivotal moment for any entrepreneur. It marks the culmination of years of dedication and hard work, and requires careful planning to ensure a successful transition. Whether it’s securing the best possible sale price, minimizing tax liabilities, or ensuring a smooth transition for the new owner, each factor of the sale process plays a vital role in shaping the future for both the retiring owner and the business they’re leaving behind. Key Considerations When Planning to Sell Your Business Before Retirement Before the Sale: Business Valuation: Getting an accurate business
Benefits of Using Mergers and Acquisitions to Grow Your Business
In today’s fast-paced and competitive business landscape, growth is not just a goal–it’s a necessity for survival and success. For many business owners, traditional growth strategies like organic expansion and product development can be time-consuming and fraught with challenge, making it more difficult to reach their goals. Enter mergers and acquisitions (M&A): a powerful and often transformative strategy that enables companies to rapidly scale, diversify, and strengthen their market position. In this article we’ll explore the benefits of M&A transactions, and how business leaders can leverage them to unlock unprecedented growth and long-term value: 6 Key Ways That Mergers and
A Popular Destination Coffee Shop & Restaurant – For Sale
Established & Thriving This well-known drive-thru coffee shop and quick serve restaurant has become the go-to destination for locals and visitors alike, serving gourmet coffee and tea, breakfast and lunch menus, including vegetarian, vegan and gluten-free options. The establishment features a prime location that attracts a steady stream of traffic. Residents, local workers and tourists are drawn to the its convenient accessibility and inviting ambiance. A business opportunity you could acquire. Request More Information Regionally Recognized & Respected The business has excellent community recognition and a great reputation, paving the way for a new owner to take the business to
What is a Quality of Earnings (QoE) Report?
As one of Colorado’s eminent business brokers, the team at The FBB Group frequently engages with business owners who are looking to sell, but are still a few years out from being prepared to put their business on the market. One of the most critical elements of this preparatory stage of the selling process is ensuring that your business is accurately valued and presented in the best possible light to potential buyers. A key tool in achieving this is a Quality of Earnings (QoE) report. In this article, we’ll delve in what a Quality of Earnings report entails, and why
Are You Prepared for an Unsolicited Offer?
Despite growing market uncertainties in the backdrop as our nation braces for another presidential election, our firm has seen an increase in business owners receiving unsolicited offers for their business. The changing M&A landscape (especially with technology and now AI) has produced many avenues for these types of offers making it more important than ever for business owners to have a plan in place to evaluate and better understand key aspects in the acquisition process. 1. Know What Drives Business Value Business values fluctuate similar to the stock market and are subject to outside market forces that can cause the
DEAL KILLERS: Mistakes to Avoid in the Sale of Your Business
With 2024 in full swing, we can reflect back on why 2023 was so challenging and better understand the primary factors that caused many transactions to fail. The M&A industry is very broad in terms of deal size, but according to Bloomberg Law the number of successful transactions in 2023 was the lowest year on record over the past 10 years. In our firm’s experience, the first half of 2023 was very active at a near record pace while the 2nd half slowed down due to lack of “sellable” businesses on the market but buyer activity remains strong. While there
Unlocking Success: The Vital Role of Financial Advisors in Preparing a Business to Sell
It’s that time of year again when business owners start reflecting on the past year while looking to the next, knowing in the back of their mind that they’re yet another year closer to the ultimate goal: transitioning the ownership of their business. Regardless of market conditions, more than half of owners of companies valued under $50M have not put together any formal transition plan. Our firm frequently meets with owners who have amazing businesses but simply have not discussed the transition of their business with their financial advisor or have even engaged with one. As market conditions become more
M&A Source Conference Update
The recent M&A Source fall conference in Charlotte, NC was well attended and provided some valuable insights into the current state of M&A. Despite the cost of capital remaining high this past year, activity continues to be healthy, but buyers remain cautious while they persevere in their search for quality businesses that are well prepared to sell. Below are a few key takeaways from the conference: Quality of Earnings or “QofE” reports are now being recommended by private equity groups to be completed by the seller prior to going to market. Typically, a QofE report is commissioned on the buy