SELLING PRIVATELY HELD BUSINESSES


–SINCE 1982–

Articles & News

Use Good Timing to Improve the Probability of a Faster Sale

Many business owners do not take into account the role that timing plays in completing a transaction when selling a company. There are two components of timing: When the business is exposed to the market and being able to react in a timely manner. When the business is exposed to the market – I have previously indicated, that if I were advising a client relative to the best time to put a business on the market, I would indicate that I would want to put the business on the market at the end of November or the beginning of December.

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Tis the Season: To Visit Your Tax Advisor

In my opinion, September and early October is the best time of year to be in Colorado. The weather is dry (although this year, too dry) and the evenings cool down to provide crisp, clear morning air, unless we are dealing with smoke from wildfires, like this year. The weather is also a reminder that we will be going into the holiday season in November with Thanksgiving, followed by Christmas, Chanukah, and a new year, 2021. Assuming that December 31 is the end of your year for tax purposes, It is also the time, if you have not already done

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Maximizing the Value of Your Business with Concentration

One of the keys to success is to surround yourself with smart people. Although I am not saying that I am successful, our firm has been in existence for over thirty-eight years and I have been blessed to have many great and talented team members. I mention this because one of my current team members, Scott Densmore, authored this month’s feature article and I encourage you to play the accompanying video. Concentration Concentration is not always about mental focus. Here, we are referring to Customer Concentration, Product Concentration, and Supplier Concentration. The higher the concentration, the higher the risk there

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Tips for Buying a Business During a Pandemic

If you would have asked me to write an article about this topic six months ago, I would have suggested that perhaps you had consumed too many adult beverages. But now that we have lived, albeit reluctantly, with COVID-19 for several months, we have some experiences that we can share. First and foremost, good, profitable, and growing businesses are still in demand. And because there are fewer of them, they command significant attention, and in several cases multiple offers. Below are some suggestions for completing a transaction in the current environment. Several of them also apply under normal business conditions.

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CARES Act Incentives for Buyers of Businesses

In an attempt to stimulate the small business economy, the Federal Government initiated a number of programs under the CARES Act. Most notable are the Payroll Protection Program (PPP) and Economic Injury Disaster Loan (EIDL). There are also numerous other provisions relating to direct payments, retirement account loans and distributions, and payroll tax deferrals. One benefit that has not received as much publicity, probably because it applies to fewer parties, is the forgiveness of six months of SBA loan payments (covering both principle and interest) for buyers of businesses that close on a transaction and get their loan fully-funded prior

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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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