Please read this new article from July 2010 issue of ACG Magazine: “Generation Gap – Family-owned businesses aren’t necessarily the motivated sellers buyers had hoped.”

In summary, while there are a range of potential motivations for owners of privately-held businesses who are starting to think about retiring, all motivations and considerations are generally less important to More…

In today’s market, many business owners still leave substantial money on the table when they sell their company’s – most often because they do not truly have a handle on their company’s value. For that reason, the valuation process is a true asset to the business owner. A thorough, professionally prepared valuation will assist them in:

Helping identify the key value drivers, major strengths, and more importantly, the major weaknesses of a company. This enables the owner to address both obvious and hidden problems prior to beginning the selling process. PET’s multi-disciplinary team can recommend and help implement improvements in a company to increase the attractiveness and value of the company to a potential buyer.
Determining a reasonable selling price. Many owners rely on general rules of thumb, casual advice from friends, or other similarly unreliable sources. Values determined by general multiples or “rules of thumb” may be too high or too low. Unless the business owner goes through a rigorous valuation process, the true – and defendable – valuation will remain a mystery. If the owner’s expectation of value is too high, it will prolong the selling process until a price concession is made. If the price is too low, money is left on the table.
Fully understanding the value of the business will assist during negotiation. In the current, challenging market, one can expect buyers to be sophisticated and experienced. They will conduct a rigorous analysis of the company even if the seller has not. They will look at those factors and value drivers that the owner and his advisors should consider in valuing the company, and they will use that information against the seller in negotiations if More…

Welcome to the new Pacific Exit Team blog.

We will use this blog to discuss a range of issues and topics related to exit planning and exit strategy.

Our blog is a place of discussion, and a place to ask questions about exit strategy and exit planning.

Of course, if you would rather talk “live” please don’t heistate to More…