If you're a founder on a path toward selling your business soon, these three minutes will help you save hundreds or thousands and maybe even millions! Update on the #1 Deal Killer and how FOMO (Fear of Missing Out) might be fueling some of the behaviors that will hurt or even kill your chance of a great exit.
6 Secrets to Selling Your Business
Are you considering selling your business but unsure whether an asset purchase or a stock purchase is the right path for you? Understanding these options is critical, as they significantly impact both the financial outcome of the transaction and the responsibilities transferred to the buyer.
As founders consider exiting their businesses, it's crucial to understand the landscape of potential buyers, which can broadly be categorized into strategic and financial types.
Without multiple interested parties, you're stuck being a terms taker instead of a terms maker. But fear not! There's hope on the horizon.
In the financial landscape, two key metrics often stand at the forefront of business valuation and analysis: EBIT (Earnings Before Interest and Taxes) and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)
Are you the sole or primary owner of an S-Corp. or LLC? Thinking you don't have a cap table or don't even know the term? Here's a critical heads-up going into a sale -- you have to prove it with documentation.
Turn the tables on buyers views on these terms by making sure they know that you have plenty of belief in the future of your company but maybe you're not willing to let your net worth depend on their ability to run it!
