Archive for July 2021

Revenue is Not an Accurate Benchmark for Valuation I frequently hear people say that they researched their company and based on that research the company should sell as a percentage of revenue, perhaps as high as 100% or more. Let’s dissect this. Suppose two different businesses have the same revenue and for whatever reason the…

Value v Profit and What is the Difference? In speaking to owners in the $3M – $10M range about selling their business, we discuss the concept of value vs profit. The distinction is important and takes a little bit of thought to get used to. One of the first topics we discuss is profit. How…

Seller and Buyer Relationships on the Sales of a Business Sometimes people look at a business transaction as a competition where there is a winner and a loser. Let’s compare the type of competition that a buyer and seller of a home may experience to what a business owner and buyer of the business may…