Article – Walt Lipski

Let’s Eat Cake: How to Recapitalize Your Business AND Retain Control
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Let’s Eat Cake: How to Recapitalize Your Business AND Retain Control

Article

Let’s Eat Cake: How to Recapitalize Your Business AND Retain Control

How do you take cash out of your business without losing a majority of your equity or losing operational control? Or worse, signing all types of personal guarantees? If you were able to take significant cash out of your business while retaining a majority ownership position and operational control, what could you do with the cash? Buy out a shareholder who may want to retire Diversify the financial exposure of running your business Fund a strategic acquisition or increase investment spending for growth and expansion, without putting your personal assets at risk Pay off the lake house, fund your near [...]

By Walt Lipski|2017-03-27T09:54:13-07:00August 6th, 2014|Article|

6 Common Mistakes You Don’t Have to Make When Selling Your Business
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6 Common Mistakes You Don’t Have to Make When Selling Your Business

Article, Business, M&A Intermediaries, Selling a Business

6 Common Mistakes You Don’t Have to Make When Selling Your Business

Selling a business is a complex process that can take from 6 -18 months. Most business owners sell a business only once or maybe twice in a lifetime. The value of the business often comprises 65-90% of a business owner’s personal net worth. So, selling a business is a Really Big Deal for most owners, and while there are many things that go into a successful transaction, there are just as many things that can derail the deal. Avoiding these common mistakes is vital. 1. Not preparing sufficiently for selling prior to going to market. Many business owners do not [...]

By Walt Lipski|2017-03-27T09:54:13-07:00May 14th, 2014|Article, Business, M&A Intermediaries, Selling a Business|

Will you get the best price for your business?

9 times out of 10 leverage will beat fair and reasonable. Don’t leave it to chance – choose to sell your business the right way. At some point, all privately held businesses are passed on through inheritance, sold or cease to exist. So the fact is, as a business owner, unless you have family members or someone to leave your business to, there’s a good chance you will be involved in a process to sell your business. This article is not about selling your business now, but rather about how to achieve leverage and advantage when the when [...]

By Walt Lipski|2017-03-27T09:54:14-07:00April 2nd, 2014|Article, Business, Selling a Business|

Selling My Business, My Way

Not All Buyers are Created Equal Before considering the sale of their business every business owner should answer the WIIFM question: What’s In It for Me? You have heard the old saying, if you don’t know where you are going, any road will take you there. For a business owner getting ready to sell, this adage might read, if you don’t know what you need out of a transaction, then most any buyer will do. However, we know this is simply not the case; most business owners would not accept just any consideration or sell to just any buyer. Before [...]

By Walt Lipski|2017-03-27T09:54:14-07:00August 21st, 2013|Article, Business, Selling a Business|

Hope is Not an Exit Strategy

How to Exit Your Business on Your Terms and Your Timing Most successful businesses have a Strategic Business Plan which focuses on making the business successful and ensuring its growth and continuity. However, many business owners have rarely thought about or put into action a plan to help them decide when to sell or transition out of their business, what proceeds they will need, how they will find the best buyers and what they will do next. Have you got an exit strategy? Ben Franklin said, “In this world nothing is certain but death and taxes”. For the business [...]

By Walt Lipski|2017-03-27T09:54:14-07:00August 15th, 2013|Article, Business, Selling a Business|

EBITDA vs. Cash Flow

EBITDA is Good, But Cash Flow is King At a recent M&A Source Conference, this was a recurring comment from Private Equity participants: “EBITDA is good BUT we need to understand the Cash Flow of any business we look at buying." Many business owners, their advisors, and even intermediaries, often mistake EBITDA for Cash Flow. EBITDA is defined as Earnings before Interest, Taxes, Depreciation and Amortization. It is easily calculated by taking normalized operating income and adding back interest, depreciation and amortization expenses. It is better to think of EBITDA as an indication of profitability and only a “proxy” for [...]

By Walt Lipski|2017-03-27T09:54:15-07:00June 24th, 2013|Article, Business, M&A Intermediaries, Selling a Business|