Articles

The Top Three Major Legal Mistakes to Avoid During a Sale

For Sellers

Posted by Frank Chebalo on

The business sale process can be complex, which is part of the reason why it makes sense to have expert help in the form of a business broker.  Legal mistakes can be very costly mistakes.  A legal mistake can also bring the entire sale process to a sudden and complete halt.  Let’s take a closer look at what you can do to avoid these kinds of ...
Read more

Interested in Buying a Business? Check Out These 3 Commonly Overlooked Areas

For Buyers

Posted by Frank Chebalo on

When it comes to buying a business, nothing is more important than the factor of due diligence.  For most people, this investment is the single largest financial decision that they will ever make.  And with this important fact in mind, you’ll want to leave absolutely no stone unturned. Let’s examine the three most commonly overlooked areas ...
Read more

5 Key Factors in Transferring Your Business to a Family Member

For Sellers

Posted by Frank Chebalo on

The odds are that you’ve put a great deal of yourself into your business.  Inevitably, the day will come when you have no choice but to walk away from your business and begin a new chapter of your life.  Quite often, businesses are transferred from one family member to another.  In this article, we will examine 5 of the key factors you’ll ...
Read more

Maintaining Confidentiality Throughout the Sale Process

Sell a Business

Posted by Frank Chebalo on

There are two key ingredients when it comes to selling a business: professionalism and confidentiality.  If either of these two ingredients are lacking, then you’ll most likely run into problems.  Sadly, many sellers see their deals fall apart due to a breach of confidentiality.  You certainly don’t want to be among their ranks. The simple ...
Read more

Embracing Retirement and Selling: 4 Tips for a Smooth Transition

For Sellers

Posted by Frank Chebalo on

No one works forever.  Regardless of how much you love your business, sooner or later you will have to step away.  Owning a business can be very demanding.  This fact can be doubly true for owner-operators of businesses.  The simple fact is that you’ll have to embrace retirement at some point. Most business owners have never sold a business ...
Read more

Key Elements for Every Partnership Agreement

Buying a business

Posted by Frank Chebalo on

You should never forget that your partnership agreement is, in fact, one of the most important business documents you will ever sign.  Many people go into business with loved ones, relatives or lifelong friends only to discover (once it’s too late) that they should have had a partnership agreement.  A partnership agreement protects everyone involved ...
Read more

Is It Time to Become a Business Owner? 3 Questions to Ask Yourself.

Buying a business

Posted by Frank Chebalo on

Many people know that owning a business isn’t for them.  But for others, the appeal and lure of owning their own business can be powerful indeed.  If you are uncertain as to whether or not this path is for you, there are a few simple questions you can ask to gain almost instant clarity.  In this article, we will explore those key questions and ...
Read more

Fairness Opinions

For Sellers

Posted by Frank Chebalo on

Since one often hears the term “fair value” or “fair market value,” it would be easy to assume that “fairness opinion” means the same thing.  A fairness opinion may be based to some degree on fair market value, but there the similarities end.  Assume that you are president of a family business and the other members are ...
Read more

Are You Asking a Reasonable Price for Your Privately Held Company?

For Sellers

Posted by Frank Chebalo on

Placing a price on a privately-held company is usually more complex than placing a value, or a price, on a publicly-held company.  There are many reasons for this fact, but one of the top reasons is that privately-held companies don’t have audited financial statements. Why are Audited Financial Statements Lacking in Privately-Held Companies? Preparing an ...
Read more

Examining the Mind of the Serious Buyer – 5 Points to Consider

For Sellers

Posted by Frank Chebalo on

Are you looking for a way to perfect your presentation?  Understanding what the typical serious buyer wants will help you get your business ready for selling. Let’s turn our attention to looking at what these types of individuals and entities really want.  After all, your time is precious. 1. An Interest in the Industry First, prospective buyers ...
Read more

Is Now the Right Time to Sell Your Company?

For Sellers

Posted by Frank Chebalo on

Like many things in life, timing can be everything when it comes to selling your company.  Every day more and more baby-boomers are now reaching retirement age.  Soon, the market will likely be flooded with companies looking to sell. According to a 2016 survey of business brokers, 54% plan to exit in the next ten years.  We may be on the ...
Read more

If You’re Selling, Get Ready to Expect the Unexpected!

For Sellers

Posted by Frank Chebalo on

Many experts agree that the best time to prepare to sell your business is when you start your business.  That may sound extreme. However, few business owners reach that level of preparedness.  A simple fact of life and owning a business is that most sales are event-driven.  Factors such as problems with a partnership, health issues, ...
Read more

Don’t Let the Dust Settle on Your Lease: 8 Factors to Consider

Buy a Business For Sellers

Posted by Frank Chebalo on

Owners often neglect understanding their leases and this can be problematic.  If your business is location-sensitive, then the status of your lease could be of paramount importance.  Restaurants and retail businesses, for example, are usually location-dependent and need to pay special attention to their leases.  But with that stated, every business ...
Read more

Your Deal is Almost Done, Then Again, Maybe Not

For Sellers

Posted by Frank Chebalo on

Having a letter of intent signed by both the buyer and the seller can be a very good feeling.  Everything can seem as though it is moving along just fine, but the due diligence process must still be completed.  It is during due diligence that a seller decides whether he or she is going to finalize the deal. Much depends on what is discovered during this ...
Read more

Three Easy & Effective Ways to Negotiate

Buy a Business

Posted by Frank Chebalo on

Far too many prospective business buyers and sellers overlook just how important negotiations can be.  But they can also be tricky. In general, there are three approaches to negotiations. Thinking through your negotiation strategies well before the time to buy or sell is a savvy and prudent move. Negotiation Tactic #1  Take It or Just Leave It In this ...
Read more

Red Flags are Not a Pretty Sight

For Sellers

Posted by Frank Chebalo on

When it comes to selling a business, sellers simply must pay attention to red flags.  Problems can always pop up, and that’s why they need to keep their eyes open. Rarely does a “white knight” ride in and rescue a business with no questions asked.  And if this were to happen, you should be asking, “Why?”  Until a deal is ...
Read more

Buying? Selling? Seven Key Points to Consider

Buy a Business

Posted by Frank Chebalo on

Buying or selling a business is one of the most important decisions that most people ever make.  Before jumping in, there are several points that should be taken into consideration.  Let’s take a moment to examine some of the key points involved in buying or selling a business. Factor #1 - What are You Selling? Whether buying or selling a business ...
Read more

When Selling Your Business, Play to Win

Business For Sale

Posted by Frank Chebalo on

If you are an independent business owner, you are most likely also an independent business seller–if not now, you will be somewhere down the road.  The Small Business Administration reports that three to five years is a long enough stretch for many business owners and that one in every three plans to sell, many of them right from the outset.  With ...
Read more

Similar Companies Can Have Huge Value Differences

Valuation

Posted by Frank Chebalo on

Can two companies in the same industry have very different valuations?  In short, the answer is a resounding, yes.  Let’s take an example of two companies that both have an EBITDA of $6 million but with two very different values.  In fact, Business One is valued at five times EBITDA, which prices it at $30 million whereas Business Two is valued ...
Read more

There’s No Business Quite Like a Family Business

Business

Posted by Frank Chebalo on

The simple fact is that family businesses are different.  After all, a family business means working with family and all the good and bad that comes with it. While an estimated 80% to 90% of all businesses are family owned, relatively few are properly planning for what happens when it comes time to sell.  According to one study, a whopping 72% of family ...
Read more