by Glen Cooper, Carolyn Ryan & Scott Perry www.myColoradoBusinessBrokers.com Selling a business is complicated. You can take control of the process, however, by learning what to do. All three of us are full-time business brokers and business coaches for small businesses. We’ve learned many lessons. In this article, we write...
By Glen Cooper, Colorado Business Brokers Buyers are often attracted to certain businesses for reasons other than reported profits. They will even pay premium prices for businesses if they see other factors that matter to them. Just what are these other factors? That’s what this article is about. Prospective...
A Business Valuation Guide for Business Owners By Glen Cooper from Colorado Business Brokers There is a simple method for appraising most businesses. Key terms are important to understand. Major exceptions must be noted. A short-cut method is useful because it can give you a general idea of...
When considering the value of your company, there are basic value drivers. While it is difficult to place a specific value on them, one can take a look and make a “ballpark” judgment on each. How does your company look? Value Driver Low Medium High Business Type Little Demand Some Demand High Demand Business...
Business valuations are almost always difficult and often complex. A valuation is also frequently subject to the judgment of the person conducting it. In addition, the person conducting the valuation must assume that the information furnished to him or her is accurate. Here are some issues that...
Consider two different companies in virtually the same industry. Both companies have an EBITDA of $6 million – but, they have very different valuations. One is valued at five times EBITDA, pricing it at $30 million. The other is valued at seven times EBITDA, making it $42 million. What’s...
Two businesses for sale could report the same numeric value for "earnings" and yet be far from equal. Three factors of earnings are listed below that tell more about the earnings than just the number. 1. Quality of earnings Quality of earnings measures whether the earnings are padded...
The initial response to the question in the title really should be: “Why do you want to know the value of your business?” This response is not intended to be flippant, but is a question that really needs to be answered. Does an owner need to...
“As shocking as it may sound, I believe that most owners of middle market private companies do not really know the value of their company and what it takes to create greater value in their company … Oh sure, the owner tracks sales and earnings...
There is the old anecdote about the immigrant who opened his own business in the United States. Like many small business owners, he had his own bookkeeping system. He kept his accounts payable in a cigar box on the left side of his cash register,...