Placing a price or value on a privately-held company is more difficult than valuing publicly company stock due to a limited market, financial and company information. There is no real time market price quoted for private companies, so we must turn to other approaches.Read More
Many business brokers believe that price may not be the most important factor in putting a deal together. When one such expert was asked about the most important factors in business brokerage, he replied with this list:
- Assurance that the sale will close promptly
- Deal terms (cash, stock, notes, all cash at closing, earn outs, contingencies, etc.)
- Total price and/or consideration
- Legal issues
In many cases, the legal issues can make or break a deal. The expert mentioned above feels strongly that the Representations and Warranties requested by the buyer should be submitted along with the Letter of Intent. He feels that the business shouldn't be removed from the market until there is basic agreement on the Representations and Warranties - this negotiation may be more complex than that of price, especially if the buyer is not willing to bend.
It has often been said that valuing a company is an art, not a science. But when buyers consider purchasing companies, there are three topics that are considered in almost a scientific way. These topics are quality of earnings, sustainability of earnings, and reliability of information.Read More
Entrepreneurs are visionary leaders who are driven by ideas and execution. They are intensely devoted to building their company. It should come as no surprise that most business owners spend little time planning for the inevitable fact that they will someday exit their company.Read More
It’s an all too common situation - the deal is getting down to the wire, the price differential is close, but the parties are not yet in agreement. The following are some ideas that might set the ball rolling and help bring the parties together.Read More
Christopher Gregory is one of the principals of Fortis Group, a newly formed business brokerage firm. Fortis Group operates out of Bozeman offices with its parent company Compass Advisors. Both businesses assist in the sale of businesses, with Fortis specializing in the sale of smaller market businesses, of which Montana is largely comprised.Read More
Attending my first Outdoor Retailer show this winter was a wonderful experience. I had the opportunity to meet so many great people, learn about a wealth of new outdoor products, and experience camaraderie amongst outdoor enthusiasts. The outdoor retail market is booming, with innovations ranging from the light-hearted to life-saving.Read More
2016 was a transition-heavy year. I joined Fortis Group upon inception in July of 2016. We handled our first transaction from start to finish, ending with a successful sale of Montana’s oldest candy store, The Parrot Confectionery in Helena, MT.Read More
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