Buying a business and starting a business are two opportunities that budding entrepreneurs may want to consider. In the case of buying a business, you’re taking slightly less risk than starting a business from scratch. Bear in mind that you’re buying the business for its value at that time. Also, know that purchasing a business,…
How to Value a Business: The Ultimate Guide for 2020
Learning how to value a business is the process of calculating what a business is worth and could potentially sell for. One common method used to value small businesses is based on seller’s discretionary earnings (SDE). This method can be used to value a business for sale as well as raising capital. To make sure…
Business Valuation Calculator: How Much Is Your Business Worth?
A business valuation calculator helps buyers and sellers determine a rough estimate of a business’s value. Two of the most common business valuation formulas begin with either annual sales or annual profits (also known as seller discretionary earnings), multiplied by an industry multiple. Both methods are great starting points to accurately value your business. For…
Succession Planning Template & 5 Steps to Write a Succession Plan
A business succession plan includes step-by-step instructions that establish procedures in the event a business owner or key employee leaves the business. Our succession planning template helps business owners as they answer questions like who will take over the business, how long will it take, and what standard operating procedures need to be passed on….
Business Succession Planning: 5 Ways to Transfer Ownership Of Your Business
Business succession planning is a series of logistical and financial decisions about who will take over your business upon retirement, death, or disability. To write a succession plan, the first step is to identify the ideal successor to take over the business, then determine the best selling arrangement. This usually involves a buy-sell agreement, secured…
Business Exit Strategy: 13 Ways To Exit
A business exit strategy is a strategic plan to sell or walk away from a business. You can sell a business with desirable assets for a profit and/or work as a manager. Typically, business owners plan their exit five years in advance, giving them time to maximize the business’s value for investors. Before selling your…
How to Sell a Business in 7 Steps
Selling a business can be a frustrating process if you don’t take the proper steps. From valuing your business to finding a buyer to negotiating the right contracts for the sale, there’s a lot to think about. We’ve put together the seven most important steps on how to sell a business for maximum value. One…
12 Questions to Ask When Selling a Business + Answers & Free Checklist
Selling a business can be a difficult process, which includes everything from preparation to valuation to closing the deal. Along the way, there are plenty of questions almost all business owners have. To help, we’ve answered the 12 most common questions you’ll likely ask during the business sale process. Getting answers to the following questions…
Seller Financing: How It Works When Buying or Selling a Business
Seller financing, aka seller carryback, is a loan the seller of a business gives to the new buyer to cover all, or a portion, of the total purchase price. Seller financing for business carries strong benefits for both buyers and sellers. It can give buyers access to more capital to buy the business and opens…
Buy Sell Agreement – Why You Need One, Template, and What to Include
A buy sell agreement, also known as a buyout agreement, is a contract that provides for the sale of an owner’s share of a business. The sale may be triggered for several reasons, such as the owner’s retirement, bankruptcy, unresolvable conflict with another owner, death, or disability. The buyer may be another owner, employee, or…