Profitability combined with positive cash flow is key to your business’s long-term success and viability. Profitability is important to the concept of solvency and to that of a going concern. How well is your business performing? Does its performance seem to be getting better or worse? Is your business making…
Financial ratios allow you to evaluate your business’s performance, compare it with other similar businesses in your industry and uncover areas needing improvement. Ratios are used to gauge solvency, liquidity, operational efficiency and profitability of your business. Internal and external users rely on financial ratio analysis to get an in-depth…
Before making a final commitment to an acquisition, it is essential to complete a thorough Due Diligence. Here are a few important things to consider when completing a due diligence. Be sure to inspect all aspects of the business before moving forward. Pay attention to detail and consult with advisors…
Prior to the Due Diligence process (after having identified the business you intend to purchase), there are a number of important questions to ask the seller when considering a possible acquisition. Why are you selling the business? How long has the business been on the market for? Who knows the…
The first step in successfully acquiring a business, is to understand your affordability. Many people begin their search for a business without first considering their financial position in terms of their personal balance sheet and net income requirements from their new investment. This of vital importance to determine what you…
There are many different methods used to value a business, most of which conclude similar results, however it is ultimately subjective and based on what the sellers view of the value of the business is, and what the buyer is willing to pay. There are many factors which have to…
2005 through 2015 has seen a dramatic increase in the number of strategically motivated buyers versus purely financial buyers. About 8% of all small businesses are franchises (and this number is growing). 80% of all small business sales involve the seller providing some form of financing for the buyer. Typically…
When entrepreneurs start up their business, it always starts the same way. They have great plans regarding where to take it and how they will achieve it. However, the way it ends for everyone is different. Some will continue to grow the business they started, others will fall to the…
SEA Business Broker a professional turnkey business brokering solution. We assist sellers with a comprehensive service, from determining an accurate valuation of their business, to qualifying potential buyers, facilitating due diligence and drafting sales agreements. The first step is to complete a mandate, which we use as an agreement to…
The cost of a business valuation will usually range from a low of $2,000 to a high of $30,000.What determines whether a valuation will cost more or less? Critical determining factors are: Type of Engagement – What is the purpose of the valuation; will a valuation calculation suffice? Are the parties…