Selling a business can be a difficult and tricky pursuit with many sand traps for the seller. And not all sellers engage investment bankers. Ironically, those who don’t are usually the ones who need assistance the most. As the managing director of an investment banking firm, I often hear horror stories from owners who tried to sell a business on their own or with the wrong advisor and, for one reason or another, ended up with a failed process. After completing more than 50 deals with a combined value of approximately US$5 billion, I’ve learned some vital lessons along the way.
Don’t wait too long to sell. Entrepreneurial sellers strive to grow their Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)—a commonly applied valuation—as much as possible before preparing to sell their business. But the longer they wait, the greater the risk that some unexpected bad outcome or external event renders the business less valuable or unsalable. In my 25 years of investment banking and corporate finance, I’ve learned that you have to leave some runway for the buyer. "
Read more at:
Secrets to a Successful Business Sale | Overdrive – The official blog of the Entrepreneurs' Organization: "
For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at info@buysellflbiz.com or 239.738.6227. Also, visit our Florida Business Exchange website at www.fbxbrokers.com and my personal website at www.buysellflbiz.com.
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