IBA Articles and News
Exit Strategies: Building A Business For Sale Part 6- Financial Documentation
The Importance of Financial Documentation No matter what anyone says, the whole purpose of going into business or purchasing an existing one is to make money. Ultimately, we live in a capitalistic society and need money to survive and get the things we want. That doesn’t mean that someone can’t love what they do at the same time but let’s not forget the importance of financial documentation within for-profit businesses. If you have been following along in this series and want to build a business for sale, or simply clean up the one that you already have, please take [...]
Your Sales Machine Increases Your Business Valuation
Guest blog from Hunt Big Sales, Tom Searcy Your Sales Machine Increases Your Business Valuation "You want to sell your business because you are tired. I get it. You’re so tired you want to give it away for 4x." I told the CEO of a laboratory services company, "I’ll tell you what, I’ll buy your company for 4x on a 60-day note, and I’ll then go sell it for 6x and pocket the difference." The CEO didn’t take my offer, but she did work for another 150 days to get her 6x payout. She thought her company [...]
Exit Strategies: Building A Business For Sale Part 5- Monthly Recurring Revenue & Customer Retention
Customer Retention & Monthly Recurring Revenue While many things help to grow business, create long-term sustainability, and make the company more marketable in a sale, having secure and consistent monthly recurring revenue streams ranks at, or near, the top of that list. Recurring revenue comes from general agreements, contracts, or subscriptions. To get the most amount of consistently recurring revenue, business owners need to have a well-executed customer retention plan that keeps people regularly coming back and purchasing. Read below for more information on Monthly Recurring Revenue, Customer Retention, how it helps the business to grow, and the appeal [...]
Exit Strategies: Building A Business For Sale Part 4- Strategic Planning
Strategic Planning First, thank you to all of those who have been following along in this series. I’d now like to take the time to talk about a topic that every business wants and needs but very few have any follow-through: strategic planning. Most large corporations will have a strategic plan and for good reason. It allows them to make decisions based on a plan and a budget. Not only does this improve overall operating efficiency, but the organization is also able to grow while quantitatively measuring the steps along the way. Before we get into why strategic planning [...]
IBA’s Market Pulse for Q2 2022 – Good Businesses Sell In Any Economy
IBA's Market Pulse Q2 2022 Review By: Edwin Mysogland, CVA, CEPA, CVB, CMEA Managing Partner When asked to put together my thoughts about Indiana Business Advisors' Market Pulse Q2 2022 review, I had to think about the concerns I have heard expressed by so many of our prospective clients and their advisors. This quarter there are 3 areas that business sellers and their advisors are asking us about: recession, multiples, and personal timing of the sale. Recession: For Indiana Business Advisors, we are in the camp of indifference. We know that good businesses sell in any economy. For those [...]
Market Pulse Report for Q1 2022 – Ed’s Key Points and Takeaways
The Market Pulse Report, published by the International Business Brokers Association (IBBA) and M&A Source, compares conditions for businesses sold on Main Street (values of $0-$2MM) to those sold on the Lower Middle Market (values of $2MM-$50MM). The Q1 2022 survey was conducted April 1-15, 2022 and completed by 360 business brokers and M&A advisors. Respondents completed 317 transactions this quarter. KeyPoints Access to talent remains an ongoing concern. Sixty-eight percent (68%) of advisors say labor shortages have had the most significant effect on Main Street and lower middle-market M&A in Q1 2022. More than half of advisors (58%) [...]
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