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10 Concepts We Can Learn About Selling Your Business From How2Exit's Interview W/ Jim Afinowich Managing Partner IBG Fox& Fin W/ over 1100 deals

How2Exit

This is especially true for larger transactions, such as those involving private equity. Private equity firms get their money from investors, and when interest rates are high, they have to lower the multiple they pay in order to get the same return they did when interest rates were lower.

Business 130
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How to Sell Business Equity

Sun Acquisitions

People sell business ownership for a variety of reasons: Needing capital to actually start the company; Swapping equity for additional capital to grow the business; Sourcing money to pay down existing liabilities and debts; Raising venture capital to expand into new markets and; Desiring to diversify their own business risk as the sole owner.

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Educating Buyers and Sellers: Fostering a Deeper Understanding of Various Financing Models in Business Acquisitions

Sun Acquisitions

For Buyers Risk Mitigation: Financial literacy empowers buyers to gauge the financial health of their prospective acquisition target. They can dissect financial statements, identify potential pitfalls, and ascertain the business’s capacity to generate cash flow.

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M&A Blog #12 – sell-side acquisition (preparation)

Francine Way

Many of these causes have their equivalences to the reasons behind the sale of a company (also known as a divestiture): Liquidity: As the equity holding period matured, investors (private equity funds behind companies) will look to sell.

M&A 130
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13 Concepts We Can Learn About Due Diligence From How2Exit's Interview W/ Ahmed Raza

How2Exit

As he started going for larger businesses, especially with the private equity fund or with investor capital, he went after more established businesses. The process of due diligence involves taking a close look at the financial, operational, and technical aspects of the business in question. or contract.

Business 130
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Navigating the Exit: A Mid-Market Owner’s Guide to Crafting an Exit Strategy

Sun Acquisitions

Common exit strategies include selling to strategic buyers, private equity firms, management buyouts (MBOs), or going public through an initial public offering (IPO). Prepare in advance by organizing financial statements, contracts, legal documents, and other relevant information.

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Building Value: Buyers Look for Strong Brands, Clean Financials and Progressive Business Plans

Focus Investment Banking

It is important to note that buyers, whether financial or strategic, will run a thorough financial diligence to ensure the accuracy of the financial statements. Brokers for sales of smaller companies (typically 1-2 locations) will generally skip the monthly services fees but ask for a higher success fee upon closing.