CVBBA Webinar: Deal Origination in a Post-COVID World

Deal Origination In A Post-COVID World

In this webinar hosted by CVBBA President Neal Isaacs, Adam Ray (Founder and CEO of BizNexus) shares his thoughts on the state of deal origination in a post-COVID world. He covers some key shifts in the deal origination space, including the reactions of central industry players like private equity & strategic acquirers as well as individual buyers and sellers, and changes in the way technology is used to get deals done. He also elaborates on the changing nature of the deal process itself and what business brokers should do to position themselves for success.

See the full interview here:

More content from the BizNexus Business Broker community below…

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BUSINESS ACQUISITION

Have you checked out our podcast?

THE BIZNEXUS ROUNDUP

Quick & dirty interviews, war stories & tips from the trenches of business acquisition, growth & sale. We aim for value, efficiency & fun, so you'll walk away with something useful to take with you along the journey of buying, growing & selling a business.

Bloomberg Interview with Sam Zell on Market Valuations & Post-Virus Economy

Sam Zell On Market Valuations

Sam Zell’s take on where we are currently in terms of investment & acquisition opportunities as of the beginning of May 2020. Basically, buyers are looking for discounts and sellers haven’t let go of the pricing expectations that existed just a couple of months ago. Until those expectations move closer together, and until the uncertainty clears up, we’re in “wait and see” mode.

See the full interview here:

Hand picket for you - read on…

BizNexus -Learn More From Our YouTube Playlist:

BUSINESS ACQUISITION

Have you checked out our podcast?

THE BIZNEXUS ROUNDUP

Quick & dirty interviews, war stories & tips from the trenches of business acquisition, growth & sale. We aim for value, efficiency & fun, so you'll walk away with something useful to take with you along the journey of buying, growing & selling a business.

Buying a Business: How to Value a Small Business That's for Sale

Buying a business

How to value a small business for sale?

Buying an existing business can yield big rewards. The more market value a business has the better.

Discover how to value a small business that's for sale.

Starting a business from the ground up is a major undertaking without any guaranteed success after all that hard work. In fact, once opened, only about 20% of businesses survive their first year. This statistic is both staggering and disheartening.

Instead of swinging for the fences and shedding blood, sweat, and tears in the hopes of getting a business to profitability, you can ensure success and profitability by purchasing a business instead of starting one.

You might be wondering how to go about putting a dollar value on an active, profitable business.... There are certain ways you can go about that and make sure that you're investing your money in the right places.

Keep reading to learn how to value a small business that's for sale.

1. Assess the Business Market Value

If you want to know how to evaluate a business, one reliable method is to assess the business market value.

Business value is determined by the market itself. With this in mind, you can compare the type of business you want to buy with the same types of businesses that have already sold.

If a business you want to buy is way above the determined market value, then you might be getting ripped off. However, the market value isn't the only factor to consider.

2. Calculate Assets and Liabilities

Another way to get an accurate idea of how much a business is worth is by determining the difference between assets and liabilities. That number will be a reliable indicator of whether or not you should invest.

Remember that assets are a bunch of smaller chunks of a business that can add up to much more value than what might first meet the eye.

Liabilities, on the other hand, are debts that the small businesses still need to pay off, which takes away from value, of course. With that in mind, too many liabilities can be a red flag when thinking about buying a business.

Check out this video if you are looking to buy a website, eCommerce, an app or SaaS Company

3. Check the Income History

Yet another way to assess the value of a small business is by looking at its income history.

This is a great way to figure out whether your investment will be profitable at the get-go. You can also figure out if you're looking at a low-maintenance business or one that will need more work put into it.

By adding up the net profits of the business from the past and getting the average, you can have an idea of what to expect after you buy the business.

From there, you can use a purpose-driven model to grow that business even further if you're up to the task.

You Know How to Value a Small Business

Now that you know how to value a small business that's for sale, you can start thinking about taking your first steps towards finding an actual business to approach.

Whether you want to buy a business that's for sale or put your business on the market through a business broker, BizNexus can help you get matched.

To get started, sign up and set your acquisition preferences, and start getting matched with businesses for sale and business brokers who can help you. Try it at www.biznexus.com

BizNexus -Learn More From Our YouTube Playlist:

BUSINESS ACQUISITION

Have you checked out our podcast?

THE BIZNEXUS ROUNDUP

Quick & dirty interviews, war stories & tips from the trenches of business acquisition, growth & sale. We aim for value, efficiency & fun, so you'll walk away with something useful to take with you along the journey of buying, growing & selling a business.

What's Your Business's Market Value? How to Value a Company

How to Value a Company

What’s Your Business’s Market Value?

Are you wondering what your business's market value is? Read this article to learn how to value a company fairly so you can sell fast and make a profit.

How to value a company

You’re finally ready to sell the business you’ve worked so hard on. The first step of the process is valuing how much your company is worth.

But if you’re new to selling a business, likely you won’t have a clue where to start. Thankfully, there are several ways to work out the market value of your company.

Ultimately, your business is worth whatever you decide it’s worth. But you can make your estimation using various ways to value the company and can choose a mix that reflects your final thoughts.

Keep reading to learn how to value a company.

Work out the Value of the Assets

If you’re wondering how to value a business, the first thing you should do is add up the value of everything the company owns. This includes all the equipment and inventory. Then, you’ll need to remove any debts or liabilities.

After all, a buyer would need to purchase all the same stuff if they were starting the business from scratch, so the company at the very least is worth the replacement cost.

While this doesn’t provide an efficient whole evaluation of a business, it’s a great starting point for understanding a business’s worth. Your final balance sheet will offer a good indication of the value of your business’s assets.

Remember that the company is probably worth a lot more than its assets though. Consider how much revenue and earnings the company pulls in.

Base It on Revenue

This leads us to another method on how to value a company. You can base the value of a company on its revenue.

How much does the company make in annual sales? Work that out and determine, using a stockbroker or a business broker, how much a company within your niche may be worth for a level of sales. For example, it may typically be worth about three times sales.

Explore Beyond Financial Formulas

It’s important not to just base your assessment of your company’s value on figures. For example, maybe the location of your business is extremely sought-after?

Always consider the value of your business based on other factors too, such as geographical location.

How to Value a Company for New Sellers

When considering how to value a company, these are some of the best methods to start with. However, one of the best ways to assist with the process is to consider professional help.

Here at Biznexus, we can help. We help match business owners with the best business intermediaries to help you sell your company for great value, on optimal terms.

The service is free for business owners, and we aim to help improve entrepreneurs’ chances of having a positive experience of selling their business. To learn more about how we can help, check out our website.

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PREPARING TO EXIT YOUR COMPANY

Have you checked out our podcast?

THE BIZNEXUS ROUNDUP

Quick & dirty interviews, war stories & tips from the trenches of business acquisition, growth & sale. We aim for value, efficiency & fun, so you'll walk away with something useful to take with you along the journey of buying, growing & selling a business.