Articles

The Sale of a Business May Actually Excite Employees

For Sellers

Posted by Frank Chebalo on

Many sellers worry that employees might “hit the panic button” when they learn that a business is up for sale.  Yet, in a recent article from mergers and acquisitions specialist Barbara Taylor entitled, “Selling Your Business?  3 Reasons Why Your Employees Will Be Thrilled,” Taylor brings up some thought-provoking points on why ...
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Goodwill and Its Importance to Your Business

For Sellers

Posted by Frank Chebalo on

What exactly does the term “goodwill” mean when it comes to buying or selling a business?  Usually, the term “goodwill” is a reference to all the effort that a seller puts into a business over the years that he or she operates that business.  In a sense, goodwill is the difference between an array of intangible, but important, assets ...
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Determining Your Company’s Undocumented Value

For Sellers

Posted by Frank Chebalo on

Business appraisals are not one-dimensional.  In fact, a good business appraisal is one that factors in a wide range of variables in order to achieve an accurate result.  Indisputable records ranging from comparables and projections to EBITDA multiples, discount rates and a good deal more are all factored in. It is important to remember that while an ...
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Considering All of Your Business Real Estate Options

For Sellers

Posted by Frank Chebalo on

In a recent December 2018 article in Divestopedia entitled, “Options for Business Real Estate When Selling a Company,” the topic of business real estate was explored at length. One of the key points of the article was that understanding one’s business real estate options would ultimately help in achieving “the goals desired in a ...
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Four Significant Issues You Need to Consider When Selling Your Business

For Sellers

Posted by Frank Chebalo on

The process of selling a business can be very complex. Whether you’ve sold a business in the past or are selling a business for the very first time, it is imperative that you work with an expert. A seasoned business broker can help you navigate through what can be some pretty rough waters. Let’s take a closer look at four issues any seller needs to keep ...
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What Sellers Don’t Expect When Selling Their Companies

For Sellers

Posted by Frank Chebalo on

In the proverbial “perfect world,” business owners would plan three to five years ahead to sell their companies.  But, as one industry expert has suggested, business owners very seldom plan to sell; rather, selling is “event driven.”  Partner disputes, divorce, burn-out, health, and new competition are examples of events that can ...
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The Importance of Understanding Leases

For Buyers

Posted by Frank Chebalo on

Leases should never be overlooked when it comes to buying or selling a business.  After all, where your business is located and how long you can stay at that location plays a key role in the overall health of your business.  It is easy to get lost with “larger” issues when buying or selling a business.  But in terms of stability, few ...
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Day One is the Day to Prepare Your Exit

For Sellers

Posted by Frank Chebalo on

Pepperjam CTO, Greg Shepard recently published “Planning Your Exit Should Begin When You Launch” in Entrepreneur magazine.  In this article, Shepard puts forward a variety of thought-provoking ideas including that entrepreneurs should be thinking about partnering early on with those they believe will ultimately want to buy their business. Thinking ...
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What Makes the Sale of a Business Fall Through?

For Sellers

Posted by Frank Chebalo on

There are a myriad of reasons why the sale of a business doesn’t close successfully; these multiple causes can, however, be broken down into four categories: those caused by the seller, those caused by the buyer, those that just happen (“acts of fate”), and those caused by third parties.  The following examines the part each of these components ...
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When It’s Time to Sell, Put Your Strengths First

For Sellers

Posted by Frank Chebalo on

Putting your strengths first will help you sell your business.  While this may seem obvious, a surprising number of business owners will either improperly index the strengths of their business or fail to emphasize those strengths adequately.  In this article, we will examine five key business strengths that you should focus on when it comes time to ...
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What Should You Evaluate When Buying a Business?

Buy a Business

Posted by Frank Chebalo on

Buying a business can be an exciting prospect.  For many prospective business owners, owning a business is the fulfillment of a decades long dream.  With all of that excitement comes considerable emotion.  For this reason, it is essential to step back and carefully evaluate several key factors to help you decide whether or not you are making the best ...
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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 ...
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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 ...
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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 ...
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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 ...
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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 ...
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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 ...
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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 ...
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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 ...
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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 ...
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