Business Exit Stories

A e-commerce business a week away from closing had a key vendor terminate their long standing relationship leading to an unpredictable outcome. How a business utilizing accrual accounting vs. cash accounting, can increase business valuations up to two times the enterprise value. The perception of risk is in the eye of the buyer. A religious dating website business owner had an asking price nearly double the market value and through properly creating value manages to get very close to his ambitious request.

Mark DaoustQuiet Light BrokerageMooresville, North CarolinaVisit WebsiteSend E-mail

A language training business with multiple locations loses 25% in value when they don’t account for revenue and expense, including cost of sales, separately. A plumbing business fails to report operating income accurately which results in a post-sale legal battle with the buyer. A custom wood furniture business owner raises his asking price with two buyers already at the table, and continues to increase his sales to meet the value for that price. Custom upholstery business owner has an overwhelming level of data which results in a smooth sale and few challenges.

Steven FylypchukMurphy Business SalesCalgary, Alberta, CanadaVisit WebsiteSend E-mail

A business for sale had profits drop by 50% during the same year and managed to increase the sale price by $500k by retaining a forensic CPA. Two partners lose millions by refusing to provide information to their M&A specialist. Assessing the level of risk and it’s importance to any business sales transaction.

Tom MacPhersonSummit AcquisitionsCharlotte, North CarolinaVisit WebsiteSend E-mail

A woman selling her kitchen and bath remodeling business had to pay 30% of the proceeds to her landlord and it was a blessing in disguise. Site excavating business goes from $1M in annual cash flow ends up being worth pennies on the dollar, but still manages to turn it into a success. National postal services franchisee manages to get removed from a personal guarantee with a landlord by utilizing a high net worth buyer.

Dustin ZeherHorizon BrokersBaltimore, MarylandVisit WebsiteSend E-mail

An owner missing a simple assignment form from an independent contractor cost a company millions in a sale. A buyer spends a fortune in legal fees attempting to acquire a business that the owner didn’t actually want to sell. How a large company’s law firm shifts the burden of risk to a smaller company during an acquisition.

Ed AlexanderAlexander Abramson PLLCOrlando, FloridaVisit WebsiteSend E-mail

A $65 million a year business that went to zero and ended up closing even thought there was a $15M cash offer on the table – all because of a personal dispute. What happened when a CPA took too long to complete the accounting review on a high-tech remodeling company. A 2% owner of a business nearly cratered the sale by withholding his vote to sell.

Andrew RogersonRogerson Business ServicesCarmichael, CaliforniaVisit WebsiteSend E-mail

How an accountant that randomly adjusted Cost of Goods cost the seller $1 million. How a business went from not being able to be sold to getting 6.5x EBITA. Why financial buyers focus on the math while strategic buyers focus on the value.

Scott McKenzieNational Mergers & Acquisitions GroupChilliwack, BC, CanadaVisit WebsiteSend E-mail

How value can be created out of thin air and then disappear just as fast. How to treat employees when exiting the business and keep them loyal at the time of exit. How the best laid plans don’t always work out but how this planning can save the day. Why it is important to figure out financing in a controlled auction environment.

David HorningBasic Business Concepts IncColumbus, OhioVisit WebsiteSend E-mail

How a franchise brand’s relationship and role should be positioned. A stock sale triggered the cancellation of insurance for the new buyer. Anticipate rookie mistakes for first-time buyers that can result in deal fatigue. What provision should all seller financing include as a deal term to help ensure that if the business closes, the seller is paid.

Neal IsaacsVR Business BrokersRaleigh, North CarolinaVisit WebsiteSend E-mail

How management structure and business philosophies can change with different types of owners. A business that doesn’t install a management team can depress the value of the business significantly. From mom and pop operation to national company positioned for a sale.

Chris GoebelCrossroads AdvisersCleveland, OhioVisit WebsiteSend E-mail