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.

“Decision Associates has done a great job for us in the marketing sector of our business. They are very knowledgeable about Amatech and always conduct themselves in a professional manner. Their methodology has been a great asset to us in heling to build long term relationships. They have been almost like an Amatech employee in that they are organized in their thoughts and concerned about the next steps that are needed to be done by us. I would recommend Decision Associates and Emily Wachter, in particular, for future marketing projects.”

~ Jason Amatangelo
Amatech-Polycel, Inc.

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