Is the Business Surviving — or Thriving? This pandemic is hard and it’s not fair. And certainly no one could see the scope of its impact coming. As bad as it is for a business, it can be even worse for others. The business owner has to do everything possible to find answers by being […]Read More
The Gold Papers
Why Sell Now?
If you are a business owner who has survived the Great Recession, you may be asking yourself the question: Is now the right time to sell my business?
Of course, as a business owner, your own personal situation will influence this decision. Do you have a successor in the family to take over the business? If not, are you ready to retire or have an interest in doing something else?
Then there are questions about the state of the business itself to ponder. Is this business growing and look attractive to an acquirer? Is the business cash flowing optimally to maximize your sales price?
These personal and business considerations are unique to you and your business. Putting these questions aside for a moment – let’s assume you want to retire, the business is growing and producing strong cash flow – is the business climate right to explore a sale? The answer is a resounding YES!
Here’s why we believe the market has never been more ideal for what we expect to be a boom in merger-and-acquisition activity over the next several years:
Deal Hungry Companies: There is significant pent-up demand for acquisitions amongst larger companies who have sat on the sidelines during a prolonged period of economic uncertainty. These companies have aggressively paid down debt and accumulated large cash reserves. Many of these companies are now seeking and are perfectly positioned to deploy capital for the right deal.
Rock Bottom Interest Rates: Interest rates for business acquisitions are at all-time historical lows, making it easier than ever to finance a business transaction.
Slowing Organic Growth: With some exceptions, strong organic growth through a company’s core product is getting harder to achieve, making growth through acquisition more compelling than ever.
Window of Opportunity: The aforementioned reasons for increased M&A activity will not last forever. The days of cheap money are numbered. Moreover, some of the nation’s most respected economists are forecasting another economic downturn as early as 2015!
We specialize in positioning, marketing, and selling privately held companies just like yours to strategic buyers and private equity groups. Our firm is unequaled at creating a competitive bidding process to maximize the value from the sale of your company. Our track record is substantial, and we stand ready to assist you with integrity, competence, and confidentiality. If you are ready, call us to discuss how we can help you capitalize on the opportunity of a lifetime! The time is right, and we are ready. Are you?
Will the business really sell for a lot of money? So how much money is a company really worth? It can be complicated. There are many issues that may need to be addressed. All businesses have strengths and weaknesses that will affect value. Has the business owner taken steps over time to prepare the business […]Read More
Tip #83 Partners, Investors and Spouses must all be in agreement to sell the business. There are many stories of partners, investors or spouses showing up right before closings or even at closings to express their opposition to the sale. Obviously, in those situations there are existing conflicts which have not been worked out between […]Read More
To get maximum value, a business has to project a strong future! Everything is changing so fast these days, it can be hard for a company to keep up. Business owners have to pay attention and be open minded as to what it will take to continue to grow their company – particularly with new […]Read More
Buyers and lenders will want as much detail as possible to make a decision. In order to sell their company, business owners must disclose certain basic information such as Financial Statements and Tax Returns. And sometimes buyers will request additional information which will require the business owner to spend much more time accumulating that data. […]Read More
Financial statements are a company’s report card and the key to determining business value. There are many items that buyers for a business will want to see, but the most critical are the Profit & Loss Statements, Balance Sheets and Tax Returns for 3 – 5 years. These documents must be current, accurate and readily […]Read More
Preparing a business for sale can be a challenge for many business owners. Who really has time when they are trying to manage the business on a day-to-day basis? And sometimes painful decisions have to be made, such as reducing the workforce, updating technology or changing directions. Plus, it can cost money and/or advisors need […]Read More
Will the company qualify for a business acquisition loan? There are many reasons that purchasers of businesses are turned down for acquisition loans. Oftentimes the price of the business is too high and the cash flow of the business can’t support servicing the debt. Sometimes the assets to be used for collateral are inadequate. But […]Read More
“What’s the value of my business?” It’s the question every business owner wants to know before exploring a sale of the business with an M&A Advisor/business broker. The answer is anything but simple. Unlike residential real estate, where you can easily compare your three bedroom, two bath home to one that sold recently in your […]Read More
February 13, 2019 Folsom, CA – Jeffrey Potts and Gold Country Advisors were recently featured in an article on Folsom Historic District’s website. Click on the heading for more information.Read More