An add back, for the uninitiated in M&A numbers, is an expense that is added back to the profits (most often earnings before interest, taxes, depreciation, and amortization, or EBITDA) of the business for the express purpose of improving the profit situation of the company. It’s a bit of alchemy; when you toss in enough […]
#buying a Business # selling a business # business sales
Murphys Law in Business Sales / Mergers & Acquisitions
Did you know that in Business Sales Nationally less than 20% of the businesses listed ever sell. Did you also know that 50% of what goes to contract dies before it ever gets to closing. Now with those types of statistics one would think that you would vet and choose your professional business broker or […]
Business Brokerage & The Magnificent Seven
The other day I had a customer come to see me and they have a small business and its not doing so well, which on its own is not all that uncommon. What was striking is when they asked me “are we too small for you to work with?” That was striking. Then today a […]
The importance of managing your team in a business sale or business purchase
Ask any seasoned broker who does deals in volume “What causes deals to die?” and they will tell you over and over again advisors. Advisors take on all shapes and sizes. They include: attorneys, accountants, wives, husbands, brothers, bartenders, banks, friends, anonymous folks on chat boards and a whole litany of characters. When conducting a […]
Experts…buying a business
There was a stat the other day showing that less than 20% of the deals consummated on the show “Shark Tank” ever get finalized. That statistic is consistent with the business brokerage stats as well. Less than 20% of the deals that go to Market ever sell and less than 50% of deals that are […]