If you’re thinking about selling your business, you’re not just preparing for a transaction—you’re preparing to hand over the keys to something you’ve poured years (maybe decades) of your life into. It’s no wonder the first question most owners ask is: “Who should I trust with my life’s work?” Choosing the right advisor can be […]
Transworld
Non-Compete Enforceability: Understanding Florida’s Rules on How Far—and How Long—You Can Be Restricted
Sellers worry about being “handcuffed” after closing. Buyers worry about the seller opening a competing business down the street. And both sides often assume non-competes are either ironclad or completely unenforceable.
Working Capital Peg Example (With Real Numbers) – A Case Study
One thing that kills large deals is working capital PEGs don’t get addressed early by the broker and the parties. Small business owners often run their business with little to no understanding that if they sell to a private equity group of a more sophisticated buyer they will look for the working capital to be given to them in the sale. Here is an example of the way it works.
The “Working Capital” Peg: How Cash and Inventory Are Negotiated at Closing—and How Sellers Can Improve It to Their Advantage
By Michael Shea, Transworld Business Advisors of Tampa Many business owners focus almost exclusively on sale price. But seasoned sellers know that working capital—how much cash, inventory, and short-term assets stay in the business at closing—can quietly swing deal economics by hundreds of thousands of dollars. In lower middle market transactions especially, the working capital […]
M&A Advisors vs. Main Street Brokers: Choosing the Right Representation for a $500K Business—or a $10M One
Not all business sales are the same. A company valued at $500,000 requires a very different approach than one worth $10 million. Yet many owners don’t realize there are fundamentally different skill sets, buyer pools, and processes involved.