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.

“I am very impressed with Decision Associates and their team’s ability to find exceptional candidates. We have used them to successfully fill a number of key executive and professional positions within our organization. Their multi-step structured approach continues to provide us with the talent we need to drive our business growth.”

~ Mike Chesley, President
Composiflex

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