tag:blogger.com,1999:blog-47226151544323876552026-09-07T01:29:58.466-04:00Maximize Your Business ValueThe purpose of these articles is to educate both buyers and sellers of the many different issues related to a business transfer. The subject matter includes things like the value of a business, the variables involved in a business transaction, financing and structure of a transaction, planning your exit strategy, etc.
We would like your feedback. Visit our latest Blog below or search our archives for past blogs.Bill Sivellhttp://www.blogger.com/profile/02410481994660450650noreply@blogger.comBlogger100125tag:blogger.com,1999:blog-4722615154432387655.post-6785942932616263542013-06-13T02:00:00.000-04:002013-06-13T12:59:49.190-04:00Consider Your End Goals When Completing Your Tax Return
Minimizing income taxes - short term
strategy or long term mistake?
Many business owners and their accountants are absolutely fixated on minimizing
taxes by showing no income. But this can be misguided planning for trying
to get top dollar when selling the company.
Business owners need to
realize valuation is usually determined by a multiple of identifiable cash Bill Sivellhttp://www.blogger.com/profile/02410481994660450650noreply@blogger.com0Windsor, ON, Canada42.279609 -83.00853289999997742.091673 -83.331256399999972 42.467545 -82.685809399999982tag:blogger.com,1999:blog-4722615154432387655.post-27732902597215398422013-05-21T07:00:00.000-04:002013-05-21T07:00:00.233-04:004 Oversights That Make Your Business Less Valuable
Don’t wait until
you decide to sell. Set your business up right with these critical steps
We've all heard at one point or another that in order to get the best
price for your business, you should maximize sales, identify new growth
opportunities, build cash flows, differentiate between your key competitors,
and minimize the owners role.
Taking these steps improves management practices, and Bill Sivellhttp://www.blogger.com/profile/02410481994660450650noreply@blogger.com0Windsor, ON, Canada42.279609 -83.00853289999997742.091673 -83.331256399999972 42.467545 -82.685809399999982tag:blogger.com,1999:blog-4722615154432387655.post-72747036268458419472013-05-14T07:00:00.000-04:002013-05-14T07:00:16.739-04:00Business Owners Must Take Advantage of the New Technologies
Yes, it's overwhelming. There
is so much new technology invading our world it can be hard to understand and
realize its impact.
Business
owners have to figure out what might help their businesses grow.
Whether
it be email campaigns, social media, e-commerce, more functional websites,
cloud computing or new equipment, business owners need to embrace
it. Businesses Bill Sivellhttp://www.blogger.com/profile/02410481994660450650noreply@blogger.com0Windsor, ON, Canada42.279609 -83.00853289999997742.091676 -83.331256399999972 42.467542 -82.685809399999982tag:blogger.com,1999:blog-4722615154432387655.post-65504184852332898812013-05-07T07:00:00.000-04:002013-05-07T07:00:10.561-04:00Critical Questions to Ask Before You Buy a Business
If you are considering a decision to
buy a business, and you just so happen to have found the perfect opportunity
here are a few questions to help to ensure that you will be happy with your
decision.
The broker will set up a meeting with the seller once you select a business you
are interested in. This will give you an opportunity to speak candidly with the
seller and find answers to your Bill Sivellhttp://www.blogger.com/profile/02410481994660450650noreply@blogger.com0Windsor, ON, Canada42.279609 -83.00853289999997742.091676 -83.331256399999972 42.467542 -82.685809399999982tag:blogger.com,1999:blog-4722615154432387655.post-49111987720186349192013-04-30T00:30:00.000-04:002013-04-30T12:09:59.257-04:00The Hard Truth: What Your Business is REALLY WorthThe danger in
thinking your business is worth more than it is—plus tips to increase its value
Equipment and inventory are tangible assets required to generate sales
and earnings. They are certainly critical to many business operations. But when
it comes to determining a business' value, the hard truth about hard assets is
that they make no difference.
What really matters is the cash flow Bill Sivellhttp://www.blogger.com/profile/02410481994660450650noreply@blogger.com2Windsor, ON, Canada42.279609 -83.00853289999997742.091676 -83.331256399999972 42.467542 -82.685809399999982tag:blogger.com,1999:blog-4722615154432387655.post-79042783583789281942013-04-23T07:00:00.000-04:002013-04-23T07:00:00.057-04:003 Reasons Why Buyers Should Use a Business BrokerMany have felt the desire to do
something entrepreneurial. There are 2 distinctly different paths to follow –
start a business from scratch or buy an existing business.
Fortunately for business brokers many of these individuals are aware of the
national statistics that are stacked against the likelihood of developing a
successful start-up.
By
purchasing an existing business, a buyer can Bill Sivellhttp://www.blogger.com/profile/02410481994660450650noreply@blogger.com2Windsor, ON, Canada42.279609 -83.00853289999997742.091676 -83.331256399999972 42.467542 -82.685809399999982tag:blogger.com,1999:blog-4722615154432387655.post-78372654923677421832013-04-16T07:00:00.000-04:002013-04-16T07:00:10.329-04:00Buyers and Sellers Usually Have a Different View of ValueMost business owners think their business should be priced more than it’s
worth – mainly because of all of their hard work over the years.
What they need to realize is
there are certain economics and realities that dictate the price.
Besides the various methods
of business valuation, the cash flow ultimately must provide the new owner a
return on cash investment, ability to service debt and aBill Sivellhttp://www.blogger.com/profile/02410481994660450650noreply@blogger.com1Windsor, ON, Canada42.279609 -83.00853289999997742.091676 -83.331256399999972 42.467542 -82.685809399999982tag:blogger.com,1999:blog-4722615154432387655.post-89422058949064936882013-04-09T07:00:00.000-04:002013-04-09T07:00:04.070-04:00Good Profit Margins Are What It's All About
Too many
business owners are scared to death to raise prices for fear of losing
customers.
In many
cases, competition does make it difficult.
But there are many situations if business owners would do some research,
they would find out there isn’t as much resistance as they thought. And when they finally raise prices, they find
out they lose very few customers and make a lot more Bill Sivellhttp://www.blogger.com/profile/02410481994660450650noreply@blogger.com2Windsor, ON, Canada42.279609 -83.00853289999997742.091674 -83.331256399999972 42.467544000000004 -82.685809399999982tag:blogger.com,1999:blog-4722615154432387655.post-77915265577858327932013-04-02T07:00:00.000-04:002013-04-02T07:00:05.094-04:00I Lost My Exit Plan
Business Owners should be planning
for their own future but they are so busy running their companies every day,
they never seem to have time to plan for exiting the business
But they
can’t avoid planning for this critical time in their lives.
Presenting
a business for sale is very different than managing it with the business
owner’s personal management style and priorities.
Bill Sivellhttp://www.blogger.com/profile/02410481994660450650noreply@blogger.com0Windsor, ON, Canada42.279609 -83.00853289999997742.091676 -83.331256399999972 42.467542 -82.685809399999982tag:blogger.com,1999:blog-4722615154432387655.post-16264412315697764052013-03-26T07:00:00.000-04:002013-03-26T07:00:06.651-04:00Too many personal expenses will impact credibility
Burying your personal expenses so
deep in your corporate statements will make it difficult to find for everyone….
including the bank and business buyers.
You’re not alone, minimizing tax liability is a strategy all business
owners think about.
When it comes time to obtain financing or sell the business, buried
personal expenses and assets can create a problem in determining the true cash
Bill Sivellhttp://www.blogger.com/profile/02410481994660450650noreply@blogger.com0Windsor, ON, Canada42.279609 -83.00853289999997742.091676 -83.331256399999972 42.467542 -82.685809399999982tag:blogger.com,1999:blog-4722615154432387655.post-45405169813782302372013-03-19T07:00:00.000-04:002013-03-19T07:00:19.807-04:00Get Your Credit Report Before You BuyMany have felt the desire to do
something entrepreneurial. Few prospective business buyers take the time to map
out a plan that will improve the probabilities of a successful business
transfer.
By
purchasing an existing business you can dramatically increase your chances of
success. Existing businesses have a
proven track record of profits, they may have a well-known brand, name,
Bill Sivellhttp://www.blogger.com/profile/02410481994660450650noreply@blogger.com0Windsor, ON, Canada42.279609 -83.00853289999997742.091676 -83.331256399999972 42.467542 -82.685809399999982tag:blogger.com,1999:blog-4722615154432387655.post-44174688870862280092013-03-12T07:00:00.000-04:002013-03-12T07:00:04.649-04:00Time to Revise the Business Plan... Again!The days of the 5 and 10 year
business plans are long over.
In
today’s business climate everything is changing at such a fast pace. Business owners need to review their plan to
determine what has already changed and forecast what could change –
competition, technology, demand for the product or service of the business,
etc.
The
typical business plan will include many of the Bill Sivellhttp://www.blogger.com/profile/02410481994660450650noreply@blogger.com0Windsor, ON, Canada42.279609 -83.00853289999997742.091676 -83.331256399999972 42.467542 -82.685809399999982tag:blogger.com,1999:blog-4722615154432387655.post-42380759454078376122013-03-05T07:00:00.000-05:002013-03-05T07:00:07.802-05:00How the Sale of a Business Can Go Off the Rails
Some business sales unravel because of the
seller, others because of the buyer and even more due to third parties. The
reasons are numerous—but most can be resolved
Like many negotiations in life,
business transactions require a willingness to consider the other party’s concerns.
If there is no sincere motivation on the part of both the buyer and seller of a
business the likelihood that it Bill Sivellhttp://www.blogger.com/profile/02410481994660450650noreply@blogger.com0Windsor, ON, Canada42.279609 -83.00853289999997742.091676 -83.331256399999972 42.467542 -82.685809399999982tag:blogger.com,1999:blog-4722615154432387655.post-54425467661116529662013-02-26T07:00:00.000-05:002013-02-26T07:00:02.505-05:005 Ways to Sell Your Business Faster and for More MoneyIt’s no secret that some businesses
are in greater demand than others. The trick is to understand why, and model
your business around those characteristics.
When a
business is more marketable it means they will typically sell more quickly and
the seller will receive a better price.
Most
business do not possess all of the characteristics of a marketable business
since you could probablyBill Sivellhttp://www.blogger.com/profile/02410481994660450650noreply@blogger.com0Windsor, ON, Canada42.279609 -83.00853289999997742.091676 -83.331256399999972 42.467542 -82.685809399999982tag:blogger.com,1999:blog-4722615154432387655.post-64495948134808322272013-02-19T07:00:00.001-05:002013-02-19T07:00:10.628-05:00Unlocking the Mystery of the Business MultipleEstablishing a price to market a
Business is not an exact science.
There are
many different methods such as the Asset Valuation Method, Critical Factors
Method, Debt Capacity Method, etc. whereby different experts can come up with
different opinions.
However,
if identifying a Business' value is not an exact science, it really should not
be too complex? It isn't!
The
Bill Sivellhttp://www.blogger.com/profile/02410481994660450650noreply@blogger.com0Windsor, ON, Canada42.279609 -83.00853289999997742.091676 -83.331256399999972 42.467542 -82.685809399999982tag:blogger.com,1999:blog-4722615154432387655.post-41500852052627342702013-02-12T07:00:00.000-05:002013-02-12T07:00:03.749-05:00Oh, it's just a Closet!The skeletons will have to come out at some point.
Whether
applying for a loan or selling the company, business owners must be prepared to
disclose EVERYTHING.
Some
popular ‘skeletons’ the find their way to the forefront are:
·
Outdated Inventory – obsolete or redundant inventory only
artificially inflate your balance sheet.
They do not Bill Sivellhttp://www.blogger.com/profile/02410481994660450650noreply@blogger.com0Windsor, ON, Canada42.279609 -83.00853289999997742.091676 -83.331256399999972 42.467542 -82.685809399999982tag:blogger.com,1999:blog-4722615154432387655.post-27471260088918964312013-02-05T11:52:00.000-05:002013-02-05T11:52:27.274-05:00Why Launch a Business When You Can Buy One?
You can minimize the risks associated with starting
a business from scratch by purchasing an existing one. Here are four reasons
why.
At one point or another, most
of us have experienced the urge to do something entrepreneurial. The chance to
be master of your destiny and your investments can be alluring.
It can also be
very frightening! We’ve all read about the high failure rates Bill Sivellhttp://www.blogger.com/profile/02410481994660450650noreply@blogger.com0Windsor, ON, Canada42.279609 -83.00853289999997742.091676 -83.331256399999972 42.467542 -82.685809399999982tag:blogger.com,1999:blog-4722615154432387655.post-68759509075757392482013-01-29T11:26:00.000-05:002013-01-29T11:26:46.082-05:00Some Businesses Can't Survive Without the OwnersBuyers
for businesses like these may see very little value.
Some
businesses are in greater demand than others. This means they’ll sell quicker
and the Seller will receive a good price for the sale. Other, less desirable businesses will not
sell, or when they are sold will sell for less than the owner expected. There are many factors that impact the sale
and value of a business; manyBill Sivellhttp://www.blogger.com/profile/02410481994660450650noreply@blogger.com0Windsor, ON, Canada42.279609 -83.00853289999997742.091676 -83.331256399999972 42.467542 -82.685809399999982tag:blogger.com,1999:blog-4722615154432387655.post-24219664946634774402013-01-22T07:00:00.000-05:002013-01-22T07:00:00.581-05:00No Stinking Plan?Without an Exit Plan, business owners could
end up with a “Value Gap”.
Most retiring business owners
expect that their financial needs will be met when they sell their companies.
Unfortunately, that is not always the case!
Business owners should have a
business valuation performed by an independent professional and then create an “Exit
Plan” to close the value gap if one exits.
A well Bill Sivellhttp://www.blogger.com/profile/02410481994660450650noreply@blogger.com0Windsor, ON, Canada42.279609 -83.00853289999997742.091674 -83.331256399999972 42.467544000000004 -82.685809399999982tag:blogger.com,1999:blog-4722615154432387655.post-78708379415716321682013-01-15T07:00:00.000-05:002013-01-15T07:00:02.589-05:007 Keys to Preparing Your Business For SaleTake these steps to successfully entice
prospective buyers and increase the likelihood of a successful transaction
As they begin a new year,
many business owners are considering how to prepare their business for sale.
For some, this simply means sprucing up their operations with cosmetic
improvements. For others, the following steps are necessary to ensure the goal
of selling one’s  Bill Sivellhttp://www.blogger.com/profile/02410481994660450650noreply@blogger.com2Windsor, ON, Canada42.279609 -83.00853289999997742.091674 -83.331256399999972 42.467544000000004 -82.685809399999982tag:blogger.com,1999:blog-4722615154432387655.post-33031707519150010352013-01-08T07:00:00.000-05:002013-01-08T07:00:09.467-05:00Strategic Sale vs. Financial SaleBusiness buyers come in many forms, but a
strategic acquirer is more likely to net you the highest price.
Many small or medium sized
companies are sold for prices expressed as a multiple of cash flow or earnings.
Each industry has a “rule of thumb” and an expected multiple that buyers will
pay. You probably have heard multiples of this sort – 2 to 2.7 times Seller’s
Discretionary Earnings. Bill Sivellhttp://www.blogger.com/profile/02410481994660450650noreply@blogger.com0Windsor, ON, Canada42.279609 -83.00853289999997742.091674 -83.331256399999972 42.467544000000004 -82.685809399999982tag:blogger.com,1999:blog-4722615154432387655.post-86216991648472533722013-01-01T07:00:00.000-05:002013-01-02T09:08:22.071-05:00Favourite Business Quotes
On the
heels of another wonderful holiday long weekend I thought it would be
appropriate to share some of my favourite quotes. The truth is these long weekends often times
are more tiring than relaxing and lightening up the weekly blog seems to be the
appropriate thing to do.
Enjoy,
and I would love to hear some of your favourites…
· &Bill Sivellhttp://www.blogger.com/profile/02410481994660450650noreply@blogger.com0Windsor, ON, Canada42.279609 -83.008532942.185656 -83.1664614 42.373562 -82.850604400000009tag:blogger.com,1999:blog-4722615154432387655.post-84964718096172160782012-12-25T07:00:00.000-05:002012-12-25T07:00:02.939-05:00Just keep hanging on!Just keep hanging on, 2013 is going to be great.
"Happy holidays and our best wishes for the New Year!"
Bill
Do you have a small business question
you would like answered about this article or others?
Bill Sivell is a salesperson with VR
Windsor Inc. [www.vrwindsor.com]
519-903-7807, which sells businesses to buyers across Canada and around the
world. His 14-year career includes diverse Bill Sivellhttp://www.blogger.com/profile/02410481994660450650noreply@blogger.com0Windsor, ON, Canada42.279609 -83.008532942.091677000000004 -83.3243899 42.467541 -82.692675900000012tag:blogger.com,1999:blog-4722615154432387655.post-64435429474266835152012-12-18T07:00:00.000-05:002012-12-18T07:00:11.451-05:00Price is based on what someone else is willing to pay!
Many
business owners have an inflated view of the value of their company.
This is
understandable, considering they have put so much money, time and energy into
building their enterprise to where it is today.
However, they need to realize the price is based on what someone else is
willing to pay for it.
So, what
are the factors that drive or impact the value of your business?
Bill Sivellhttp://www.blogger.com/profile/02410481994660450650noreply@blogger.com0Windsor, ON, Canada42.279609 -83.008532942.185624 -83.1664614 42.373594000000004 -82.850604400000009tag:blogger.com,1999:blog-4722615154432387655.post-9395021783095897722012-12-11T12:00:00.000-05:002012-12-11T12:00:03.707-05:00How sellers can protect from getting their business back, after they sell it
Two
questions sellers ask… “How much is my business worth,” and “How can I protect
myself so I don’t get the business back later?
In many
ways, the latter question is more sensitive issue than the first. An improperly structured transaction can
create problems for the seller years after he has sold the business.
Although
there are no guarantees, a combination of the following Bill Sivellhttp://www.blogger.com/profile/02410481994660450650noreply@blogger.com0Windsor, ON, Canada42.3183446 -83.034242342.224417100000004 -83.1921708 42.4122721 -82.8763138