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.

“When we needed to make a new hire, we contacted Decision Associates. We were very pleased with the process that they used and the attention they gave to our company. Though we didn’t find the ideal candidate for the job, they moved us in a direction that actually made more sense than hiring. They guided us on the right path for the changes and made recommendations that were perfect for our organization. They looked at what the best decision for our company was, even though it wasn’t the first path that we took. We valued the insight, suggestions and the good working relationship that we built. I wouldn’t hesitate to recommend Decision Associates for recruiting and/or operational improvements.”

~ Steve Henderson, President
Great Lakes Cast Stone, Inc.

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