The Differences Between EBITDA and SDE We are often asked “What is SDE?” and “What is EBITDA?” by both buyers and sellers of businesses. While both earning calculation methods for business, the use of these methods vary depending on the business structure. In this month’s article, I will attempt to explain the differences, and when […]
By Kathi Gurin, Sales Xceleration & Customer Experience Consultant, Sage Consulting, Inc. If you’re reading this, you’re likely receiving some great support as you move toward the purchase or the sale of a company. You have already read the excellent articles in previous FBB eNewsletters outlining the “dos”, the “don’ts”, and the “don’t forgets” surrounding
Set Your Business Apart – A Holistic View of the Business Lifecycle Read More »
By Russ Anderson, SSA, P.C., Certified Public Accountants & Advisors Generally, most small business can elect either the cash or accrual method for income tax reporting purposes. There are exceptions related to size of business, type of entity that might be a partner, and whether inventory is a material factor in producing income. The decision
At the end of March, I attended the ACG Capital Growth Conference, which celebrated its 13th year. The conference enjoyed record attendance of approximately 750 attendees, including many regional attorneys, accountants, and lenders. The conference was also attended by many Private Equity Groups from around the country. My takeaways from the conference are, first, that there is
Improving the Probability of Selling Your Company Read More »
If you are thinking of selling your business, I cannot over emphasize the importance of addressing the need for accurate and timely financial information. Most sellers want to maximize the price that they get for their business and keep the maximum amount of cash received at the closing table. In order to achieve these objectives, one
The Importance of Accurate and Timely Financial Information Read More »
I am in the middle of a transaction in which a fairly sophisticated buyer submitted a Term Sheet for a service business having a value of approximately $3 million. During the process of analyzing the offer with my client, the Seller (who is also a fairly sophisticated business man), a number of questions came up
Term Sheet vs. Letter of Intent vs. Purchase Agreement Read More »
Although this year has been the exception, buyer activity typically slows down during the summer, and picks up with intensity after Labor Day, as the vacation season ends and buyers realize that there is still time to complete a transaction before the end of the year. In anticipation of this increased buyer activity, our firm
This month’s article is written by our Team Member, Scott Densmore, and addresses the tricky issue of a potential sale of a business to one or more employees. Although a sale to an employee could be a viable option, as Scott’s article points out, there are traps for the unwary and an owner should consider
Some of the most frequent questions we receive from sellers relate to employees. One common item we often discuss is a potential sale to an employee. While some transactions like this get completed, there are several issues that should be thoroughly thought through before making the decision to pursue selling to an employee. Confidentiality Owners
Most entrepreneurs considering the sale of their company have a legitimate concern about keeping a potential sale confidential from employees, competitors, and customers until the transition process can be appropriately managed. Owners would not want the employees to be concerned and leave for another job, they wouldn’t want their competitors to use the potential sale
