Insights by Candor Advisors

Insights by Candor Advisors

By Kirk MichieBusinessEntrepreneurshipInvestingManagement
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Insights by Candor Advisors episodes

  • Business Valuation: How to find out What Your Business is Worth

    Key Highlights:

    1. Confidentiality Agreement (NDA): Ensure all potential buyers sign an NDA before receiving sensitive information about your business. This protects your intellectual property, financials, and customer data.

    2. Business Valuation: Familiarize yourself with industry-standard multiples of EBITDA, revenue, or discretionary earnings to understand what your business might be worth in the current market. You don’t need a formal valuation, but it’s important to have a benchmark.

    3. Showcasing Your Business: Create materials that highlight your business’s performance, key employees, and growth opportunities. This is critical for presenting your company in the best light to potential buyers.

    4. Buyer Universe: Identify potential buyers, including private equity firms, strategic buyers, and competitors. Reach out to all of them simultaneously to generate interest and competition.

    5. Driving Value: By running a well-organized process, you can create competition among buyers to secure the highest price, best terms, and the ideal outcome for your business’s future.

    Get more information at https://candor-advisors.com

    5 min
  • DIY Business Sale: Tips for Founders

    Key Highlights:

    1. Confidentiality Agreement (NDA): Ensure all potential buyers sign an NDA before receiving sensitive information about your business. This protects your intellectual property, financials, and customer data.

    2. Business Valuation: Familiarize yourself with industry-standard multiples of EBITDA, revenue, or discretionary earnings to understand what your business might be worth in the current market. You don’t need a formal valuation, but it’s important to have a benchmark.

    3. Showcasing Your Business: Create materials that highlight your business’s performance, key employees, and growth opportunities. This is critical for presenting your company in the best light to potential buyers.

    4. Buyer Universe: Identify potential buyers, including private equity firms, strategic buyers, and competitors. Reach out to all of them simultaneously to generate interest and competition.

    5. Driving Value: By running a well-organized process, you can create competition among buyers to secure the highest price, best terms, and the ideal outcome for your business’s future.

    Get more information at https://candor-advisors.com

    5 min
  • Optimizing Business Exits: Beyond Standard Exit Strategies for Maximum Value

    Key Highlights:

    1. Beyond Standard Exit Strategies: Traditional ways of planning a business sale follow a usual path, but the best sales are made with plans that match the specific needs and market situation of the business.

    2. Personalized Planning: A custom plan looks at things like how much your business is worth, current market trends, and what's good or not so good about your business. This helps get your finances in order, handle any issues, and aim for a higher selling price.

    3. Planning for Now and Later: Whether you're thinking of selling soon or in a few years, it's important to have a plan that fits your business goals and what's going on in the market right now.

    4. Increasing Your Business's Value: Making your business more professional and reducing any risks can make your business more appealing to buyers. This could lead to getting more money based on your revenue or profits.

    Get more information at https://candor-advisors.com

    4 min
  • Search Funds: Broken LOIs and Buyer Behavior

    Key Highlights:

    1. Understanding Search Funds: Search funds are a newer type of buyer often led by individuals with limited experience in acquisitions. Unlike traditional private equity firms, search fund leaders may lack experience in deal execution and due diligence.

    2. Challenges with Search Funds: A significant issue with search funds is their inability to close deals. Many search fund leaders have never bought a business before, making it difficult for them to secure financing and complete transactions. This can lead to broken LOIs, where deals fall apart after months of due diligence, wasting valuable time for sellers.

    3. The Risk of Broken LOIs: According to recent data, most broken LOIs result from buyer behavior during due diligence. Sellers must be cautious about entering into exclusivity agreements with buyers who may not have the resources or experience to close the deal.

    4. Importance of Buyer Evaluation: Sellers should thoroughly vet potential buyers before accepting an LOI. Ensuring that the buyer has the necessary experience, financial backing, and ability to conduct due diligence is crucial to avoid disruptions in the sale process.

    Get more information at https://candor-advisors.com

    5 min
  • Whose Advice Should A Founder Take When Selling?

    When the time comes to sell your business, one of the most critical decisions you’ll make is whose advice to follow. The process of selling a company is complex, and the right guidance can make all the difference. However, with so many voices offering opinions, it’s essential to discern which advice truly adds value.

    Get more information at https://candor-advisors.com

    4 min

About Insights by Candor Advisors

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Advice and insights about selling your business by Kirk Michie and his network to guide successful founders to a better outcome.