Consider this scenario: A private equity group expresses interest in purchasing your company. They’ve reviewed 48 companies in your sector, and yours is the only one they’re excited about. After a promising start and an offer that seems right, you enter due diligence, anticipating a successful sale. Ninety days later, the deal falls through, leaving...
It takes more than luck to sell your company for a premium price. You have to work on these four areas to generate buyer interest. Seneca, a first-century Roman philosopher once observed, “Luck is where the crossroads of opportunity and preparation meet.” Some business owners believe they’ll be able to “get lucky” and sell...
A friend asked me to sell his company for him. It was a solid company with some good niche products in an M&A market much like today. He said “I won’t take less than $14 million” because that is the value based on what his country club, golfing buddy sold his company for. As a...
Selling a Business is Similar to Selling a Home A few years ago, close friends decided to sell their spacious home. The kids had left. Upkeep was now a burden. So, they set off on the journey many of us have traveled—replacing leaky faucets, tightening loose doorknobs, and knocking out a punch list of...
Exiting a business is a major milestone—one that requires careful planning to maximize value and achieve your financial and personal goals. Unfortunately, many business owners make mistakes that can cost them time, money, and opportunities. At Allegiance Capital, we’ve helped many entrepreneurs successfully navigate the sale of their businesses. Here are the five most common...
Allegiance Capital specializes in representing family owned businesses in the sales process. Here’s an example of how, despite a number of challenges and obstacles, the Allegiance Capital team led the successful sale of a family owned business, a construction company in Arizona. The majority owner and CEO of this family owned business was the founder’s...
At Allegiance, we are very good at getting premium prices for our sellers and successfully closing transactions for our buyers. Our secret is educating the seller (whether we are representing the seller or not) on how to get a better offer (price and terms). The better the offer the seller gets, the more likely the...
Many entrepreneurs think that the best time to sell is when market multiples are at their peak. But is trying to time the market really the way to go in hopes of getting the best deal? Let’s take a closer look at this idea. Understanding Market Multiples Market multiples compare a company’s valuation to similar...
It’s fall! The leaves are turning colors, the weather is cool and crisp, and the days are growing shorter. Many people are starting to make plans for the upcoming holidays. For many businesses, it’s also time to start planning for next year. Does your company have its own planning and budgeting...