Knowledge Base

screen individual buyers

Selling a Business | How to Screen Individual Buyers

In the world of journalism, an adage stands strong: “If your mother says she loves you, check it out.” This guiding principle underscores the importance of verifying facts before accepting them as truth. Likewise, the realm of engaging potential buyers for your business follows a similar doctrine. While a buyer might assert their financial readiness […]

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the market

How Long do Buyers of Businesses Stay in the Market?

What’s the timeline for a buyer to make a decision on pursuing a business acquisition or calling off their search? Let’s delve into this question. Buyers typically fall into two categories: companies and individuals. Companies: When companies opt for growth through acquisitions rather than organic expansion, they often remain active in the market indefinitely, or

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companies

Why do Companies Acquire other Businesses?

The motivations that drive companies to pursue acquisitions are diverse and often intricate. Nevertheless, recognizable trends emerge, enabling us to formulate overarching insights that prove valuable in prioritizing your value drivers. Why is this significant? Understanding the rationale behind an acquisition will: Empower you to discern which value drivers can potentially yield a higher return

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valuation

Business Valuation Methods in a Nutshell

Central to pricing a business is its profitability. Profit stands as the foremost criterion buyers seek and the paramount factor that underpins a business’s valuation. While other factors may enter the equation, the spotlight remains firmly on one: profit. Various terms encapsulate profit, including: Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA): The favored term

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