For decades, institutional capital was reserved exclusively for multi-million dollar conglomerates and large-cap corporations. But over the past few years, private equity firms have increasingly turned their attention to profitable lower-middle-market businesses, creating new opportunities for small-business founders. While a private equity acquisition can provide growth capital, operational expertise, and financial security, it’s not the […]
Customer lifetime value is a powerful metric. In general, the higher your customer lifetime value and the more customers you have, the more revenue you can expect to make from your business. In turn, this can lead to increased profit. So, it is helpful to know how to increase customer lifetime value. This post discusses […]
Selling a business can feel as overwhelming as it feels exciting. Once you have decided to sell, you’ll likely deal with many questions: how to receive a business valuation, what documents to prepare, whether to use a broker or not, and more. While every transaction is unique, most successful business sales follow the same core steps. […]
What is a finder’s fee? When used correctly, finder’s fees benefit all parties involved. Often, without an intermediary earning a finder’s fee, a transaction between two parties would not occur. This post explains what a finder’s fee is, how it works, and includes a finder’s fee agreement sample. Finder’s Fee Meaning A finder’s fee, also […]
Most business owners have a good grasp on their internal financial statements and ask their outside accountant to prepare the company tax returns. As a result, most business owners are less familiar with the nuances of their tax return, and may not be aware that the information in the tax return might be different than […]
If you are considering selling your company, it is important to know an earnout is an option. An earnout can be the bridge between your asking price and what the buyer is willing to pay, allowing you both to accomplish your goals. Understanding how an earnout works allows you, as the seller, to consider all […]
Family Business Exit Strategy: Tips to Make the Right Choice Developing a family business exit strategy is more than just a financial decision. Your strategy not only secures your financial future, but also secures your loved ones’ livelihoods. This is an important personal and financial decision that deserves your undivided attention. In this post, we […]
Entering into a letter of intent to buy a business is typically the first formal step in the process of buying or selling a company. Understanding a letter of intent, how it works, and what it includes is especially important if you are a first-time buyer or seller. This post will discuss several aspects of a […]
If you ask someone how to become a successful entrepreneur, chances are they will mention Silicon Valley. After all, those are the stories that make headlines. In the fast-paced world of tech startups, success happens quickly— and what sounds more exciting than growing by 50% year after year? It is no wonder other paths to […]
Debt covenants (also referred to as loan covenants) are important components of the legal loan agreement between a borrower and a lender. They exist to protect the lender from risks associated with loaning funds, and to define the terms of the loan agreement so that there is complete clarity between the borrower and the lender. […]
