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When revenues and profits are growing, there is continued upside and buildup of new business in the pipeline, a high proportion of revenue is EBITDA and there is positive cash flow, the industry business cycle is at or near the recent peak and when there is high demand for your products and services, and you…
Seller financing is usually the cheapest and easiest to obtain. It also tells the Buyer that the seller has confidence in the business. There are no loan fees and the interest rate is usually lower than the bank rates, but the term of the loan is often shorter. Seller notes make up the majority of…
Many businesses transactions require the buyer to put one-third and possibly up to one-half down. The remainder is financed by the seller, a bank or other financing sources. Sellers generally prefer to receive all cash at closing and some buyers are able and willing to accommodate them. Buyers are usually trying to put in as…
The sale and purchase agreement (SPA) for your business is one of the most important legal documents you’ll ever sign. After all, many years of hard work will culminate in this single transaction. You don’t want to have difficulties collecting the money you are due or have legal problems haunting you into the future. A…
We have found over the last 20+ years that with the Northeast Business Advisors process a sale is generally completed within 10-12 months, sometimes it can be less, sometimes a little longer. In the overall world of mergers and acquisitions, many shareholders never manage to sell their companies, while others take many years. The main…
Northeast Business Advisors works with clients that are SMBs – small and medium businesses, ranging in size from approximately $2M to $200M in annual revenue. Some of the industries we currently represent include: Architectural Signage Business Processing Software Boat/Marine Manufacturer Cable and Wire Harness Manufacturer Commercial Bakery Manufacturer Commercial Concrete Commercial Construction Electrical Appliance Manufacturer…
The main reason transactions are not completed is due to weakening financial performance. If the financial performance of a business starts to deteriorate and falls below what is being forecasted, the business will typically decline in value and a prospective buyer starts looking harder at the business for other signs of weakness. We always emphasize…
It typically takes more money than time to buy a business and more time than money to start one. The break-even point for buying versus starting a business is the start up costs of buying equipment, renting space, hiring and paying the staff, advertising, establishing contractual relationships, vendor relationships and building up a customer base.…
The current owner typically stays on for a period of time to ensure a smooth transition, or longer depending on the structure of the deal. The former owner’s compensation is negotiated based on the buyer’s estimate of what would they need to pay someone in the market to replace you.
