The Business Was Worth More Three Years Ago
By Troy Frank, Owner, Indiana Equity Brokers Estimated read time: 6 min The short answer: The best time to sell a business is while it’s still growing, not after momentum fades. Owners who wait until a health scare or burnout forces the sale usually accept a lower price, because buyers discount stagnant, owner-dependent companies. A business that might earn 4 to 5 times EBITDA while...Read More
What Makes a Business Worth More?
By Troy Frank, Owner, Indiana Equity Brokers Estimated read time: 6 min The short answer: A business is worth more when a buyer can see steady profits, low risk, and a company that runs without the owner. The biggest business value drivers are recurring revenue, a diversified customer base, a real management team, clean financials, and consistent growth. Two businesses with the same earnings...Read MoreDeal Structure When Selling a Business
By Troy Frank, Owner, Indiana Equity Brokers Estimated read time: 6 min The short answer: Two offers at the same price can leave you with hundreds of thousands of dollars’ difference in real, after-tax cash. Deal structure decides what you keep, and it comes down to how much is cash at closing, how much is a seller note, and how much is rollover equity. Roughly 70 to 80 percent of small...Read More
Can a Landlord Kill Your Business Sale?
The short answer: Yes — a landlord can block or delay a business sale, even after a buyer and seller have agreed on price and terms. When a business is sold, the commercial lease typically must be assigned to the new owner, and most leases require landlord approval to do that. If your lease has unfavorable assignment language, a short remaining term, or a difficult landlord, it can stall your...Read More
