If asked, most business owners would probably say that it’s their goal to sell or transfer their business in order to fund their retirement. And the first question they have is: “How much is my business worth?” They may have a vague idea of what they think it should be worth, but often don’t...
Buyers pay more for quality professional services firms. If you work diligently to grow and improve your business, buyers will be willing to pay more for it. There are many factors that will pique a buyer’s interest and drive the best possible price. While owners tend to focus on the top line,...
For business owners who may be thinking about planning a business transition in the near future, it is important to understand how personal and one-time expenses in the business will impact the value that they will receive. Because the business is worth only what a future owner expects to...
Buyers are interested in acquiring businesses that are transferable with sustainable profits. A solid management team and successor are critical components of a transferable business but are not always present in closely held businesses. Developing a contingency plan and a strong management team...
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 current economic uncertainty. A big reason why a deal fails is that owners do not plan early enough to sell their business. It’s clear that CEOs...
Business owners and their advisers sometimes fixate on the multiples, usually of EBITDA, obtained in transactions. Normally, these are transactions involving other professional services firms and other owners. To maximize business value, however, that focus is misplaced. The reason is simple:
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Professional services firms face intense pressure to increase profit and productivity, with new client revenue declining to the lowest level in the past nine years, thanks to the global pandemic. From uncertain economic conditions to digital disruption to increased competition, increased...
Professional services firms face intense pressure to increase profit and productivity, with new client revenue declining to the lowest level in the past nine years, thanks to the global pandemic. From uncertain economic conditions to digital disruption to increased competition, professional...
The post-pandemic business environment is far from certain. Every global crisis leaves a legacy. Some changes are short term, some are localized, other are related to specific traumatic events, but many of the changes we expect to see will be long-term, acute and structural.
Project based professional services firms have no recurring revenue. They survive based on a stream of new projects and off a backlog of projects. For some firms, the Coronavirus has eliminated or diminished the flow of new projects. And, backlog projects may fund salaries for now, but when it...
