Potential buyers of an operating business fall into one of two categories: Financial or Strategic. Financial buyers are defined as those buyers who are strictly looking into acquiring a business as a good opportunity for an investment that is likely to increase in value. Unless a financial buyer has previously or is currently invested in a similar line of business each business stands on its opportunity to deliver a favorable return on their investment. So as a consequence each investment opportunity competes with the other […]
The Montana Group has, since 1991, consulted with business owners on how to improve the marketability and ultimately the business’ sale proceeds. This complimentary monthly newsletter focuses on issues that we have experienced while consulting with business owners on selling their business.
Selling a Business: It’s Important to Answer these Questions on Who Of course, the idea of selecting someone to sell your business is something that is extremely important and could be daunting. However, addressing these considerations should be helpful before making the selection of a representative. The firm’s list of completed transactions is of interested but make sure to review a list of completed transactions that were the responsibility of the person assigned to sell your business. Also, determine what role this person will fill […]
When to sell a business? Here are current factors. In an effort to explain why now (2015) is a great time to sell here is a basic understanding of the financial buyers, also known as private equity groups, their funding, and their motivation. Private equity groups (PEG) are numerous and represent another asset class investment option, which is owning private operating established businesses. Their sources of funds include endowments, pension funds, wealthy investors, corporate funds, and their own funds. This asset class provides a semi-liquid […]