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Using SBA Financing Strategies for Business Acquisitions

The Small Business Administration (SBA) is focused on helping small businesses succeed. The SBA offers a full range of services including helping business owners access contracting opportunities and gain access to capital through SBA loan programs. The SBA guarantees a percentage of these loans through participating lenders. Many business owners are not aware that SBA financing for acquisitions can go up to $5 million.These are largely cash flow loans and can fund a straight forward business acquisition as well as: Partner Buyouts Sale of a business between family members Business Acquisitions for growth Buyout of a Competitor And more… For the Seller looking towards retirement, [...]

By | April 22nd, 2015|Blog, Capital and Funding, Selling a Business|

Thinking of Selling in 2015? Get Your Stuff Together: How to Catch the Eye of Private Equity

If you are thinking of selling your business in 2015, one of the first things you need to know is who will be your potential buyers. And the odds are good that your best buyer could be a private equity group. In general, private equity firms are involved in about 50% of transactions between $5 and $50 million. But this is the challenge: private equity firms receive hundreds of deal proposals every year. Only the smallest fraction of those proposals makes it through to an offer. Here are some statistics for a recent 3-year period. Average Deals Received a Year: [...]

By | January 20th, 2015|Blog, Capital and Funding, Selling a Business|

Is There a Future For the American Entrepreneur?

Things may not be looking good for entrepreneurs in America, according to this article, The Mysterious Death of American Entrepreneurship.  Well, things may not be  looking good for entrepreneurs outside of the tech sector, that is. I'm working with entrepreneurs every day, so I see lots of stories of success and plenty of stories of struggle. But I think the American entrepreneur is still alive and kicking. An owner of a successful manufacturing company contacted me recently, wanting to find a way restructure the ownership in his company in order to allow his older brother to retire with financial independence. [...]

By | May 8th, 2014|Blog, Capital and Funding, M&A Intermediaries|

Finding Capital: Getting a Helping Hand

It has been said that necessity is the mother of invention. In this Wall Street Journal article, Big Firms Fill Funding Gap, the author shares how big firms still need their smaller suppliers and vendors.  So much so in fact, that some large firms are stepping up and providing working capital and bridge loans to help their smaller counterparts grow and become well-established companies. For entrepreneurs and owners of smaller firms, having just a few large customers, i.e. customer concentration, greatly increases overall risk in the ownership and operation of the business and can become a real value detractor when it [...]

By | April 24th, 2014|Blog, Capital and Funding, M&A Intermediaries, Selling a Business|

Are You Resourceful?

In my business I have the privilege of working with many remarkable leaders and entrepreneurs and I have to agree with this article: being resourceful goes a long way towards success. Finding ways to make something out of nothing, setting up your office wherever you can use your laptop, taking the risk of killing good ideas for better ideas - resourceful people figure out how to make it happen. Are you scrappy, inventive or enterprising? Check yourself against this list from Inc. Magazine: 7 Things Really Resourceful People Do

By | April 2nd, 2014|Blog, M&A Intermediaries, Selling a Business|

Six Signs That It’s Time To Sell Your Business

Are your business trends up? Is your business profitable? It might be time to sell. Are you wondering if it’s time to sell your business? Consider these indicators: Your Business Trends are Up It is hard to sell a business when trends are going down. Most buyers don’t want to buy on a downward trend. And if they do, they expect to pay less. Business Owner Burnout (BOB) If you don’t look forward to going to work anymore, you may have BOB.  BOB (not your uncle) is one of the top reasons businesses go up for sale.   [...]

By | February 24th, 2014|Blog, Selling a Business|

A Cautionary Tale

Business owner “Joe” and I had been talking over several months about selling his business. He had been in business for over 40 years.  At age 67 Joe knew it was past time to retire. However, he was having a hard time coming to grips with the realization that it was time to move on.  In addition, the company was having an excellent sales year, and Joe thought maybe he could just hold on a bit longer. When we last spoke it was a Wednesday afternoon.  Joe called me and told me that he had come to a decision. He [...]

By | February 24th, 2014|Blog, Selling a Business|

Is it time to take some chips off the table?

At some point all privately held companies are either sold, passed on to the next generation or cease to exist.  Consider this: one business owner is turning 65 every 57 seconds!  In this article, Andrew Silver shares some great perspective on why now may be a good time to sell all or just a part of your business.

By | February 3rd, 2014|Blog, Selling a Business|

Know Your Numbers

Do you really know what the health of your company is? Too often we find that business owners don’t really know their numbers and financials when it comes time to sell their business. This list shows you some of the metrics bankers, investors and buyers look at to measure the health of your company.  You will also want to check out this comparision of EBITDA vs Cash Flow.

By | January 31st, 2014|Blog, Selling a Business|