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With 3.65 million baby boomers reaching retirement age every year, a historic number of small business owners are looking to pass the torch. As impressive as that number is, according to the International Business Brokers Association (IBBA), only about 20% to 30% of businesses brought to market every actually find a buyer. [su_spacer size="5"] That’s a sobering statistic. [su_spacer size="5"] While you can point to rising interest rates, tight labor markets, recent inflation, and evolving buyer expectations, the reality...

14 November, 2024

If you’re looking to buy a small business, you’ve probably found few options that check all your boxes. Many buyers begin with a list of “must-haves”: high profit margins, minimal competition, low staff turnover, and a stable history of growth. Ideally, they want a business that doesn’t depend on the seller’s expertise, allowing them to work fewer hours or even run the business remotely. [su_spacer size="10"] While these criteria make sense, the reality is that no small...

11 November, 2024

Most business owners fret about whether they are asking too much or not enough for their goods or services. This dilemma keeps many prospective sellers up at night. Ask too much, and you may fail to attract enough customers; ask too little, and you’re cutting yourself short. In this article, we’ll examine how to determine if you are charging the right amount for your goods and services. Many business owners begin working with an M&A advisor...

09 November, 2024

The market of buyers for small Main Street businesses, not only in New Mexico but throughout the United States, is dynamic and steadily evolving. Over the past decade, demographic shifts, broader economic trends, and evolving buyer motivations have had an effect on the types of businesses sought out. Just as before, buyers look for businesses that have strong and reliable financial performance, but an ever-growing pool of buyers look for opportunities that they can bring...

07 November, 2024

For many business owners, deciding to sell their company is one of the most significant financial decisions they will ever face. This choice not only alters their financial situation but also impacts their lives as a whole. Life after selling a business can be vastly different, so it’s essential for owners to consider what their future might look like post-sale. Sellers must carefully contemplate both the financial and personal implications of selling long before they put...

02 November, 2024

BizBuySell just published its latest quarterly Insight Report. According to this market watcher, 2024’s third quarter posted its fifth consecutive quarter of year-over-year gains, representing a 5% growth over 2023 but slipped 2% from the last quarter. This decline is attributed to business sellers waiting to see the outcome of the upcoming election and hoping to take advantage of further anticipated interest rate cuts, something we’ve been observing as well. While more intuition than anything...

01 November, 2024

It’s easy to see why buyers focus on a business’s finances during due diligence. But P&Ls and balance sheets only tell part of the story—they show how the business performed under the previous owner’s watch. Now it’s your business, and you’re the X-factor. With so much activity leading up to getting to the closing table, it's often easy to get swept away in all this activity and not give much thought into what happens next....

31 October, 2024

Business owners are constantly seeking ways to cut costs and boost profits to make their businesses as attractive as possible to buyers. Fortunately, there are many surprisingly simple strategies to save money across various aspects of your business. 1. Embrace Digital Solutions One effective way to save money is by going digital. Just as you should evaluate which tasks can be outsourced or handled in-house, consider which operations can be performed digitally. For example, if you...

26 October, 2024

  If you, as the seller, want to receive the best price for your business, it’s essential to understand that your adjusted or normalized EBITDA will serve as the foundation for the purchase price. This EBITDA will be used as a multiple to negotiate the final price. Every dollar counts; for example, if your EBITDA is off by $50,000 and the multiple is three, the final acquisition cost of your business is reduced by a significant...

19 October, 2024

Selling a business is rarely as straightforward or fast as business owners would like. Unless you’ve sold a business before, there will be unforeseen obstacles. Even if you’ve sold a business before, you will likely run into hurdles along the way. The fact that every business is different, and this impacts the variables associated with the sale of a given business. Market conditions change daily, and that means knowing the current “lay of the land”...

12 October, 2024

As a business owner, you gain freedom and the potential to earn more than you might otherwise earn. If you are ready to tackle the hard work involved in business ownership, you may be prepared to take the next step. Two main advantages to being a business owner include forging ahead with more freedom and also boosting your income. However, you must be prepared to take some risks.  Grow Your Income Owning your own business gives you...

05 October, 2024

Selling your business is a significant decision. You’ve invested considerable time, money, and effort into building and running it—perhaps it even represents your life’s work. Now that you’ve decided it’s time to sell, getting the best professional advice is crucial. This is where working with a professional business broker can be the key to not just selling your business, but selling it at the best price and terms possible. Here are some common questions sellers often...

28 September, 2024

Every business has a story to tell. In fact, selling a business involves the art of storytelling as you must pique interest and enthusiasm in the mind of the buyer. Through storytelling, you can convey not only the history of a business, but also its future.  Good business brokers and M&A advisors are storytellers who know how to relay the core truths and the core values of a given business. Storytelling is a fantastic way for...

21 September, 2024

The lessons learned through hands-on experience are often irreplaceable. When it comes to selling or transferring ownership of a business, inexperience can be particularly troublesome. Many business brokers and M&A advisors have observed firsthand the jeopardy business owners can face when they either attempt to sell their business on their own or engage someone without the proper experience. For instance, holding an MBA or a law degree cannot substitute for the years of tangible experience...

14 September, 2024

Determining an accurate valuation for a company is far from straightforward. It involves a range of complex, and often rapidly changing, factors. The challenge is compounded by the fact that some aspects of valuation are inherently subjective. This means that different professionals might ultimately arrive at different conclusions. Despite these challenges, we can establish ways to navigate the valuation process effectively. One key factor to consider is the ownership structure of the company. A company that...

07 September, 2024