Blog
Navigating the Landscape of Business Buying: The Challenge of Undefined Parameters.
I want to buy a good, cash flowing business doing $500K in annually EBITDA. So what? Dog groomer, dentist, tire shop – can you be more specific? I love fun facts. Here is my fun fact of the day; according to the Oklahoma Secretary of State, there are...
What is SDE and EBITDA and how is it used in selling your business?
Today, we're going to chat about two important things: SDE and EBITDA. Now, I know those sound like fancy words, but don't worry, I'm here to break it down for you. First off, let's talk about SDE, which stands for Seller's Discretionary Earnings. Basically, SDE shows...
This Causes Business Sales to Fall Apart EVERY TIME!
The #1 thing that prevents a deal from closing . . . . wait for it . . . But first, FUN FACT: According to IBBA Insights – over 50% of all business acquisitions with an agreed-upon purchase price close the transaction and consummate a deal. Deal killer #1 is: the...
Can Bockus Consulting Be Trusted to Close Your Business Sale?
At the heart of our approach lies a fundamental understanding: we are not dealing with static commodities. Instead, we recognize the fluid nature of business, where every transaction embodies a multitude of variables. Sales go up and down; expenses go up and down;...
The Smartest Business Owner in the Room . . . Unveiling the Unseen Genuis Behind Business Sales.
In business, there's a common adoration for those who seem to have an uncanny knack for success. They're hailed as the smartest minds in the room, revered for their ability to navigate complexities and orchestrate triumphs. Once upon a time, my client was one such...
Selling Your Business to an Employee
Cover all the bases! Business Valuation: Accurately valuing the business is crucial for setting a fair sale price. A thorough assessment of the business's financials, assets, market position, and growth potential will help determine its worth. Terms of Sale: The terms...
Seller Financing – What You Need to Know
Selling a business is a complex dance that requires not just a transfer of assets but also a transfer of knowledge and trust. For owners with decades of experience, the challenge lies in ensuring the new steward of the business is not only capable but also committed...
Life Cycle of Your Business and the Value Perspective
As a Certified Valuation Analyst with the National Association of Certified Valuators and Analysts, it's imperative to comprehend the nuanced trajectory of businesses through their lifecycle stages: startup, growth, maturity, and decline. Each phase presents unique...
Selling a business is a significant undertaking, often requiring sellers to present their financials in the best possible light. One crucial aspect of this process is the identification and verification of addbacks and taxable losses. However, in the complex world of business sales, my mantra “If in doubt, leave it out” becomes a guiding principle. Here is my advice when preparing financial statements and the wisdom of erring on the side of caution.
Understanding Add Backs and Taxable Losses: 1. Addbacks: Addbacks are adjustments made to a business's financial statements to reflect the true earning potential of the company. These adjustments typically involve discretionary expenses, one-time costs, or owner...
Navigating the Final Lap: A Complete Guide to Closing a Business Sale
The process of closing a business sale involves a series of crucial steps and legal documents to ensure a smooth and legally binding transaction. From the initial negotiation to the final signatures on the dotted line, each step plays a pivotal role in bringing the...