SELLING PRIVATELY HELD BUSINESSES


–SINCE 1982–

Articles & News

Maximizing the Value of your Business During the COVID Environment

Even during these financially uncertain times, businesses are being bought and sold.  As you would expect, the better managed and performing businesses are attracting more attention and commanding higher prices.  Below are several suggestions that you, as a business owner, can implement in order to make your business more marketable and valuable, either now or when you decide to go to market. Team of Employees Start with your team.  Do you have the right people in the right positions to navigate the current environment?  If not, you may find that the high unemployment rate has created a pool of talent

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Back to the Future

Now that we have been living with COVID-19 and its social and economic ramifications for approximately two months, it appears that we, as an economy, are starting to adjust and get back to business, albeit, somewhat differently.  For those of you who lost a loved one or friend, we extend our condolences and understand that the health danger is not over and there will be more casualties from the virus.  There will also be businesses that have been mandated to close that will not have the capital to reopen and businesses that reopen that will not have the capital to

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Selling a Business During the COVID-19 Disruption 

Although I have been selling businesses in Colorado for over thirty years, and have seen many disruptions of the business cycle caused by events such as war, bubbles, and recessions of various magnitudes, the current economic environment has characteristics that are different than the others.  Prior to the mandatory stay at home order from Colorado’s Governor Polis, the economy was operating at close to capacity and our firm had several transactions in process.  It appears that most buyers, sellers, and lenders want to continue to work together to complete those transactions.  As you would anticipate, we are involved with robust

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The KRDO Business Connection with Ted Robertson – FBB Group – March 23, 2020

Ted Robertson, Host, KRDO’s Business Connection: Welcome to KRDO’s Business Connection. I’m your host, Ted Robertson. Joining me this morning is Mr. Rob Amerine of The FBB Group. And The FBB Group is all about selling businesses, or a business brokerage. Is that… am I on point there, Rob? Rob Amerine, CBI and Broker Associate, The FBB Group: Yeah. Ted, thanks for having me. We were established in 1982, so we’ve been here through thick and thin, and we basically work with sellers to sell their businesses. We work with many buyers, as you can imagine. And I myself have

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Transaction Metrics

As a member of several M&A industry associations, our firm receives a fair amount of industry information relating to transaction data.  This month’s article, which was compiled by Scott Densmore, one of our experienced Brokers, highlights some of the 2019 Q4 information, as reported in the Fourth Quarter 2019 Market Pulse Survey. Below are two significant items of interest: It is still a Sellers’ Market in most segments.  The recent lowering of interest rates may prompt some buyers to take advantage of the lower rates to capture higher a cash flow and obtain better rates of return on their investment.

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When is the Best Time to Sell Your Business?

My team members and I are often asked that question. With the understanding that the only person that can answer the question is you because of your unique situation, there are some factors that can align to increase the value and marketability of your business. These factors include: When the business is properly positioned to sell When the market is robust When the time is right for you Let’s explore these factors in summary fashion: In last month’s eNewsletter, we addressed “positioning” a business in greater detail, but a few attributes include a good management team, diverse customer base, being

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Positioning Your Business For Sale

In order to maximize the value of your business, it is important to start planning for the sale three to five years in advance, but it is never too early to start the process. Below are several items that will make your business more attractive to the market. Financial Information – Timely accurate financial information going back a minimum of three years is important not only to buyers, but also to lenders. Although nobody likes paying taxes, there needs to be a “paper trail” demonstrating that the business can support the debt service, withstand a reasonable downturn in the economy,

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State of the Business Transfer Market

The other day, I was on a conference call with a potential seller and his accountant. Near the front end of the call, the potential seller indicated that he was nearing retirement, getting tired, and wanted to sell his business, but only if market conditions are right. A variation of this conversation is part of virtually every discussion that we have with our prospective clients. In order to answer it properly, we believe that it is appropriate to dig down and consider several factors in defining the market. Below are some of the factors that we consider. Global and monetary:

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Proactive Tax and Transition Planning

Ideally your advisor can work with you to implement strategies to mitigate taxes without negatively impacting the value of your business. The use of retirement accounts is an example of that type of planning, as part of the valuation process involves recasting financial statements and tax returns. By developing a paper trail of legitimate deductions, your M&A advisor can “recast” your income statement by adding back contributions to the owner’s retirement accounts. In addition to positive actions to apply, you also need to avoid negative actions that will diminish value. For example, deferring income and accelerating expenses. Buyers expect to

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