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 MoreWhy Financial Forecasting is Critical for Business Growth and a Successful Exit
Financial forecasting is an essential tool for business owners looking to maintain stability, drive growth, and prepare for the future. By projecting revenues, expenses, and cash flow, business leaders can make informed decisions, mitigate risks, and optimize their financial strategies. Whether preparing for expansion, securing financing, or planning an eventual sale, having a clear financial…
Read MoreWhen to Start Planning Your Business Sale: Timing Matters More Than You Think
One of the most common questions business owners ask is, “How far in advance should I start planning for a sale?” The answer: earlier than you think. While the actual sale process may take six to twelve months once you’re actively in the market, the work that drives valuation and reduces deal friction often starts…
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 MoreThe Role of Working Capital in M&A Transactions
Working capital is a fundamental component of mergers and acquisitions (M&A) transactions, influencing deal valuation, purchase price adjustments, and post-closing operations. Buyers and sellers must align on how working capital is defined, measured, and transferred to ensure a fair and smooth transaction. Misunderstandings around working capital can lead to post-closing disputes and unexpected financial impacts,…
Read MoreThe Role of Tangible and Intangible Assets in Business Value
When determining the value of a business, buyers look well beyond revenue and profitability. Assets—both tangible and intangible—play a critical role in shaping how your business is perceived and priced. While tangible assets offer a clear sense of what the buyer is physically acquiring, it’s often the intangible elements that drive premium valuations. Understanding both…
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 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.…
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 More