Why Earnings Are Critical To The Sale Of Your Business
Why Earnings Are Critical To The Sale Of Your Business
Decision Associates M & A understands why earnings are critical to the sale of your business. We can help you assess your earnings position and establish a pathway to prepare your business for sale.
Upside of strong earnings
- Makes your business bankable; you receive favorable interest rates and covenants
- May avoid personal guarantees
- Provides resources for reinvestment from self-financing or favorable bank financing
- Better ability to provide income and benefits to retain and attract good employees
- Able to satisfy large customers who evaluate vendors’ financial stability
- Increases potential sale price to third
- If selling to children or employees, makes it bankable and provides a very stable starting point
Downside of weak earnings
- Reverse of all the above
- 85% of potential buyers will not even look
- 15% of buyers will be interested in assets or customers
- Minimal price
For a deeper understanding of the importance of earning, contact Decision Associates M&A.
- Preparing To Sell
- What Do Buyers Really Want?
- How To Increase The Price You Get
- Questions To Ask When Selling Your Business
- Timing The Sale Of Your Business
- Why Earnings Are Critical To The Sale Of Your Business
- Buying a Business
- Meeting With Your Bank To Finance An Acquisition
- Questions to Consider When Buying A Business
- Mergers & Acquisitions Whitepapers