Business Selling
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Internal Succession vs. Selling the Business: Which Path Fits Your Goals?
Intro Many owners eventually face the question of internal succession vs selling business. Should the company be transferred to children, family members, management, partners, or employees? Or should it be sold externally to a private buyer, strategic buyer, family office, or private equity group? Exit planning for business owners helps clarify which path fits the…
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How SBA Financing Impacts the Sale of a Business
Intro SBA financing business acquisition can significantly affect the sale of a small to mid-sized business. Many buyers do not purchase entirely with cash. They rely on SBA loan business purchase financing, a business acquisition loan, seller financing, or a combination. Sellers who understand financing can improve buyer screening and closing probability. Why SBA financing…
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What Documents Do I Need to Sell My Business?
Intro “What documents do I need to sell my business?” — the answer depends on company type, size, buyer profile, and deal structure. However, most buyers will request a consistent set of financial, operational, and legal documents during valuation, buyer screening, LOI, and due diligence. However, most buyers will request a similar set of business…
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Can I Sell My Business If My Tax Return Shows Low Profit?
Intro Many owners ask whether they can sell business with low tax return profit. The answer is sometimes yes, but it depends on whether the company has real, supportable cash flow and whether the financial story can be explained clearly. A low profit tax return may create challenges, but it does not automatically mean the…
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What Add-Backs Are Accepted When Selling a Business?
Intro Add backs business valuation is one of the most important topics for owners preparing to sell. Many businesses show lower taxable income than their actual economic benefit to the owner. Financial recasting helps identify owner benefit, non-recurring expenses, and SDE add-backs that may help buyers understand the company’s true earnings power. What is an…
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SDE vs. EBITDA: What Business Sellers Need to Understand
Intro When preparing for a business sale valuation, owners often hear two terms: SDE vs EBITDA. Both are used to measure earnings, but they are not the same. Understanding seller discretionary earnings, EBITDA business valuation, owner benefit, and add-backs can help sellers explain the company’s true earnings power to buyers and lenders. What is SDE?…
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How to Sell Your Business Confidentially Without Employees or Customers Knowing
Intro Many California business owners who want to sell my company California confidentially hesitate because they do not want employees, customers, suppliers, landlords, or competitors to know the company is for sale — a concern that is entirely valid and manageable with the right process. That concern is valid. A poorly managed sale process can…