Posts by Jeff Erlewine
Why Valuing Your Business Shouldn’t Wait for a Sale
Most business owners only think about valuation when they’re preparing to sell. But waiting until an exit is imminent can leave you unprepared, underinformed, and potentially underpaid. A business valuation is not just about pricing a sale—it’s a strategic tool that helps you plan, grow, and make more confident decisions. Understanding the value of your…
Read MoreHow to Attract Multiple Buyers and Maximize Competition in an M&A Sale
Generating interest from multiple buyers is one of the most effective ways to maximize valuation and improve deal terms in an M&A process. When multiple parties are competing to acquire a business, sellers gain leverage in negotiations, often leading to a higher purchase price, better deal structures, and improved closing conditions. Conversely, a sale process…
Read MoreUnderstanding M&A Deal Structures: How Transactions Are Structured in Practice
Mergers and acquisitions (M&A) transactions can take many forms, with deal structure playing a critical role in shaping financial, tax, and operational outcomes for both buyers and sellers. While every transaction is unique, most deals follow common structuring frameworks that dictate how ownership is transferred, how consideration is paid, and how risk is allocated between…
Read MoreEssential Marketing Materials for Selling a Business
Selling a business requires more than just finding an interested buyer. A well-executed sale process depends on professionally prepared marketing materials that provide prospective buyers with the right level of information at the right time. These materials help generate interest, establish credibility, and guide buyers through their evaluation of the opportunity. Without them, a business…
Read MoreHow to Prepare for Due Diligence — and Protect the Value of Your Deal
Accepting an offer to sell your business is an exciting milestone — but it’s also the beginning of one of the most critical phases of the entire transaction: due diligence. During this stage, the buyer and their advisors will thoroughly examine every part of the business — financials, legal structure, operations, tax history, HR, contracts,…
Read MoreDetermining a Fair Purchase Price in M&A: Key Considerations
One of the most critical aspects of any merger or acquisition is determining a fair purchase price. While buyers and sellers may have different perspectives on valuation, the ultimate goal is to establish a price that reflects the company’s financial health, growth potential, and risk profile. A well-supported valuation helps facilitate a smoother negotiation process…
Read MoreThe Power of Clean Financial Statements: A Stronger Business, A Smoother Sale
Accurate and well-organized financial statements are fundamental to running a successful business. Whether managing day-to-day operations, securing financing, or preparing for a sale, clean financials provide transparency, build trust, and support better decision-making. Disorganized or inaccurate records, on the other hand, create uncertainty, slow down processes, and can cost a business money in valuation and…
Read MoreHow Business Value is Determined: Key Drivers in M&A
Understanding the value of your business isn’t just a financial exercise—it’s a fundamental step in strategic decision-making. Whether preparing for a sale, seeking investment, or planning long-term growth, business valuation is a nuanced process influenced by financial performance, market conditions, and intangible factors. Ultimately, valuation translates potential into price, ensuring that business owners, investors, and…
Read MoreSelecting the Right Advisor: Comparing Business Brokers, M&A Advisors, and Investment Bankers
When selling a business, choosing the right advisor can make a significant difference in the outcome of the transaction. Business brokers, M&A advisors, and investment bankers all facilitate business sales, but their expertise, process, and target markets vary widely. Understanding the differences between these professionals is critical for business owners looking to maximize value, streamline…
Read MoreHow to Increase the Value of Your Business Before a Sale
Selling a business is a major financial and strategic decision, and the steps taken before going to market can significantly impact valuation and deal outcomes. Buyers evaluate businesses based on profitability, risk, and growth potential, and sellers who proactively address these areas are more likely to command a higher purchase price and close deals efficiently.…
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