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.

"The Performance Review that Decision Associates created not only meets all of our needs but exceeded our expectations. We have been utilizing this format for several years now and have found the review easy to complete for both management and employees. The Performance Review is an interactive process that promotes employee engagement directly related to the primary responsibilities of each position and puts the employee in the driver's seat of their professional growth. This review process has proven to be meaningful to our employees demonstrated by employees talking about their review and the objectives they have set for themselves throughout the year."

~ Sara Wurst, Director of Operations
Verify Services, LLC

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