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Toons 'n Tips Plus
Cartoon and Tip with an Article and Listings
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TIPS FOR MAXIMIZING BUSINESS VALUE
from FRONT RANGE BUSINESS, INC.
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Tip #10
Where are the Business Financials?
If business owners do not have all their financials and tax returns at their fingertips (and many don’t), it usually means they don’t refer to them to effectively manage their operations. It can also mean they don’t understand them. Business owners should regularly review their financials with their accountant and other advisors to do the proper planning necessary for a successful business. And when it comes time to seek financing or sell the business, these all-important report cards must be immediately available.
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Due Diligence – What, When and Who?
Most business brokers would use a simple definition of “due diligence” to mean the process through which a potential buyer evaluates a target company or business for the purpose of acquisition. Many people believe this detailed analysis should take place only after an offer is made or even a purchase agreement is signed.
The process is similar to a forensic analysis. According to many business brokers, relevant areas of concern can include financial reports and tax returns, the business’s place in the market, real property, age of equipment and technology, insurance and liability coverage, review of debt, employee benefits, immigration, and international transactions.
Business brokers say that due diligence should be performed well before a company goes to market. This helps to uncover any hidden or unexpected costs that may be associated with the sale of the business, ensuring that the seller is receiving a fair sum from the buyer. The best advice is to employ the help of a qualified business broker. Protecting the seller is a business broker’s job, and properly performing due diligence is one of the most important steps to take when selling your company.
By employing the services of an experienced business broker as one of the first steps of an exit strategy, the owner can receive a “buyer’s point of view”. This can be invaluable in identifying any weaknesses or “defects” that may exist and allowing time to make corrections or improvements. This can mean the business owner will receive the best price for his or her company when it comes time to put the company on the market.
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FEATURED BUSINESSES FOR SALE
- Established Master Franchise - World Class Brand - Cash Flow $267,000
- Machine Shop - CNC & Manual - Price $585,000
- Deli Zone - Only $215,000
- Turn-Key Deli Zone - $175,000 - ready to start today
- Learning Center Franchise - Sale Price $49,000
Click here for our complete list of businesses for sale.
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| Front Range Business, Inc. has assisted hundreds of owners in the sale of their business since 1986. Using our extensive experience and expertise, we work closely with our clients to help them achieve the maximum post-tax proceeds in a timely manner. We are available to meet with business owners at no charge to confidentially discuss their situation and to identify their strategic options. You can find out more about us at www.frontrangebusiness.com or call me at 303-221-4565. |
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