Pitfalls Around Earnouts (and Why They Rarely Payout)
By George Deeb Takeaway: “The devil is in the detail, in terms of how an earnout gets written.” What Is an Earnout? An earnout is a financing arrangement for the purchase of a business in which the seller finances a portion of the purchase price, and payment of this amount is contingent on achieving a predetermined level of future […]
Tip For Maximizing Business Value
Tip #25 Burying excessive personal expenses in the business financials can lower business value! The most popular method of valuing a business uses a multiple of earnings over a period of years. Business owners should be aware of that while attempting to reduce the bottom line with personal expenses to minimize taxes. Though there are […]
Maximizing Your Business Value Before a Sale
Gary Miller GEM Strategy Management, Inc. | November 1, 2017 The process of selling a business has become more complex today. Buyers are more cautious and much more rigorous in their due diligence efforts due to the Great Recession. A big reason why a deal fails is that owners do not plan early enough to […]
Going to Market Without a Price©
Editor’s Note: This article is the copyrighted property of The FBB Group, LTD.® and is published by The M&A Source with written consent of The FBB Group, LTD.® Although we value every business, we may have a conversation with our sell side clients about the advisability of going to market without a price, which is […]