Annual Insight Report shows that while small business sales still remain at historically high levels, 2019 transactions took a five percent dip from record-setting 2018 levels. The number of small businesses that changed hands in 2019 dropped slightly compared to last year according to the latest BizBuySell Insight Report, a nationally-recognized economic […]
I am tempted to say “in the beginning” … However, some context is useful. Fundamentally there are three forms of business entities. A Sole Proprietor(ship), a Partnership, and lastly Corporation. I suspect they were developed in that order. Everything else stems from those three forms. In determining which form is good […]
What is the best business? What business should I buy? How do I decide which business is right for me? These are all great questions and while there are many things you can take & should take into account; I like to answer it this way: What problems to do you […]
Normalizing earnings allows one to both compare earning both year over year and against other companies. There are several terms that we use to represent this normalized earnings number. They included SDE (Seller Discretionary Earnings), SDI (Seller Discretionary Income), Adjusted EBITDA, Adjusted Net, or (my favorite) Owner Benefit. While conceptional simple, […]
By JIM CUMBEE Even at “hello” I could feel the tension. Four of them, one of me. I was feeling some heat as they stared at me, looking for answers. There were two representatives from each company. Their desire to merge was borne from a conversation between the two owners at a […]
Published by “Kabbage Inc.” Small-business owners in nearly every field struggle with cash-flow, particularly in the early stages of their business. In fact, the majority of failed businesses—nearly 60%—say that all or most of their failure was due to cash-flow issues, surveys show. Here are three cash-flow metrics that encapsulate a few […]
Alexander Huls (Published by the The Hartford) Every small business has major turning points: Moments where one or two key decisions were made that set the business on a path to success. But when you’re just starting out, it can be hard to determine which choices will make or break […]
Repost from BizBySell Many of the analyses and valuation techniques most business appraisers rely on to value small businesses use an analysis of historical financial statements to: Identify potential trends Compare the subject to the industry average Find any required normalization adjustments The question then becomes, how does one appraise or […]
Sellers need to be able to answer a number of basic questions that Buyers will ask in one form or another. Here are some of those questions. Why are you selling your business? You need to be able to provide an honest reason for why you are selling. I find that […]
Chief Economist Scott Brown discusses current economic conditions. Definitions and Determinations: The National Bureau of Economic Research (NBER) defines a recession as “a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.” […]