I have never met a business owner who believed his business to be worth less than $5,000,000, even if they were generating $100,000 in annual turnover. It is an odd truism that I suspect reflects the eternal optimism and frontier spirit that embodies the American entrepreneur. “I started this company. I built it from the ground up. It is worth $5 million; at least.”
The purpose of a due diligence period is to allow the Buyer to fully investigate all of the claims, warrants, and representations a Seller has made regarding the status of the company. Are the financial statements accurate? What protections are in place to lock in key customers, employees, technologies, and other assets upon which the value of the company is based? What are the internal structural components, processes and […] Continue Reading…
We have a few more weeks left before not only this year is over, but a complete decade. Wow, think about that for a moment. From the great start of 2000, when we were coming out of the late 90’s low, until the tough end of 2009, it has been a classic example of a typical business cycle.
What a wild ride it has been. Any business that has […] Continue Reading…
The short answer is no you are not legally required to use an escrow when selling your business. Escrow is a process where a neutral 3rd party oversees the transaction and provides assurance that no funds or title will exchange hands until all of the instructions in the transaction have been followed.
The escrow agent’s job is to follow the escrow agreement, hold any deposited funds and manage the documents until the change of ownership is complete. The escrow services are usually […] Continue Reading…
The process of selling your business is a very emotional test for any business owner. A business is a living creature that ebbs and flows daily with internal and external influences. The challenge is to successfully manage this creature through day to day operations while going through the selling process. It’s not just the time requirements but it is the emotional focus that I see owner’s have hard time with during escrow.
Most entrepreneurs have a love/hate relationship with their […] Continue Reading…
