A Practical Guide for Business Owners IMPORTANT DISCLAIMER This guide provides general educational information about tax considerations in business sales. It is not legal or tax advice and should not be relied upon as such. Every business sale is unique, and tax laws change frequently. You must consult with qualified tax and legal advisors before…
How Owners Can Tell Paper Value from Market Reality For business owners considering a sale, the gap between a valuation report and real buyer behavior can be substantial and costly. That gap often doesn’t become clear until buyers weigh in. Business valuations are powerful tools. They can help owners understand what they’ve built, plan for…
Is Your Valuation Market-Ready? A 10-Minute Self-Audit Before you rely on a valuation report, take ten minutes to see whether your expectations align with today’s market. Answer honestly. Recent Results: Is Performance Telling the Right Story? Buyers pay for growth and certainty. Gaps here invite deeper scrutiny and impact perceived value. Market Comparables: Are You…
Why Inventory Verification Matters in a Business Sale Most small business transactions are structured as cash-free, debt-free deals that require the seller to include a normalized level of working capital to sustain the current revenues post-closing. The most significant elements of working capital are receivables, inventory, and payables, with inventory frequently being the largest component.…
Managing inventory is one of the most overlooked steps when preparing a business for sale. Here’s what distributors and manufacturers need to know. For most distributors and many manufacturers, inventory represents a major component of their assets and figures prominently in operating profit calculations. When considering selling your business, managing inventory becomes crucial. Too often,…
What You and Your Partners Need to Consider Before Selling Your Business When multiple partners own and run a business, getting everyone to agree on day-to-day decisions isn’t always easy. Getting partners to decide when to sell the company and on what terms can be challenging and even confrontational. To avoid confrontation and ensure…
M&A for architecture and engineering firms is accelerating, fueled by strong industry growth and rising buyer interest. The sector is projected to grow at a 10% annual rate, driven by demand for infrastructure, development, and specialized technical services. This growth fuels an ongoing need for skilled professionals and gives rise to new firms – many…
What to Know About Conducting a Targeted Acquisition Search and Six Steps to Close the Deal Acquiring another contractor can be one of the most effective ways to grow your business— especially when organic expansion slows or becomes less efficient. But like any major initiative, acquisitions require upfront planning, internal alignment, and the right search…
When selling your business, price isn’t the only thing that matters—how you get paid is just as important. In the lower middle market, deals are often structured with equity rollovers, earnouts, or a mix of both. Understanding these options can help you maximize value while minimizing risk. What Is an Equity Rollover? In an equity…
Jane Marlowe, Senior M&A Advisor, BMI Mergers & Acquisitions Good news: the service sector, particularly businesses with inelastic demand profiles like facilities management, field services, and healthcare, is anticipated to see increased M&A activity due to announced U.S. tariffs. With lower tariff exposure compared to manufacturing, these businesses are becoming increasingly attractive targets, potentially commanding…
An estimated 10,000 business intermediaries operate across the U.S., helping business owners sell their companies under various titles such as Business Broker or Investment Banker. As advisors in the lower middle market, we have been referred to as business brokers, advisors, and investment bankers by our clients and their attorneys and accountants, highlighting how these…
Often, purchase price allocation is viewed as “something the accountants do” and is one of the last items discussed before closing the sale of a business. However, this is a mistake, as purchase price allocation (PPA) can significantly impact the value received and influence the negotiation strategy, as well as the future relationship between the…
