A family-owned business that had been successful for decades was turned over to the founder’s son. While succession planning was a part of the long-term plan for the founder, the execution of the plan didn’t go as planned.  Two companies with similar issues when being positioned for sale and how the two founders handle their […] The post A Success Plan That Took a Business Worth Millions to Zero appeared first on Business Exit Stories.

Business Exit Stories

A Success Plan That Took a Business Worth Millions to Zero

A major league baseball team was brought to Denver and the details of how a transaction like this goes forward.  A hyper growth company that was doubling sales every year outgrew the capabilities of some members on their management team. An owner often tries to show loyalty and does everything possible to keep those that […] The post What Is Pre-Due Diligence and How It Can Make You Millions appeared first on Business Exit Stories.

What Is Pre-Due Diligence and How It Can Make You Millions

A partnership business went from a consistent year over year growth rate to a valuation of zero in a few short years. A family owned 30-location retail service business that had passed to the second generation. As it came time for the third generation to decide if they were interested in taking over the business, several […] The post How Two Partners in a Successful and Growing Business Managed to Take It to Zero When They Decided to Sell appeared first on Business Exit Stories.

How Two Partners in a Successful and Growing Business Managed to Take It to Zero When They Decided to Sell

A medical research company was founded by research PhDs and had a highly complex business model that relied on highly paid professionals which performed and managed the medical research. While the business generated millions in revenues, the cost of the highly paid staff produced an EBITA in the low six figures. A label manufacturer’s divorce […] The post How Skillfully Crafting A Story Regarding Your Exit Can Turn Your Biggest Loss Into The Reason Why A Business Is Sold appeared first on Business Exit Stories.

How Skillfully Crafting A Story Regarding Your Exit Can Turn Your Biggest Loss Into The Reason Why A Business Is Sold

An ecommerce business that was two businesses in one and how the lack of understanding and accounting of inter-company transfers not only nearly derailed a deal but almost cratered the entire business. The importance of having a CFO, either a fractional one or full-time one, and how this can make the difference between a successful […] The post Why Certain Types Of Buyers Will Pay More Money For The Same Business appeared first on Business Exit Stories.

Why Certain Types Of Buyers Will Pay More Money For The Same Business

A founder of an oil rig manufacturing business started meeting with a buyer on his own and his M&A Advisor cautioned him not to negotiate any of the agreed upon terms. He was also told to follow the plan that had been developed on when to share the sale with his employees. Find out what […] The post How an Entrepreneur’s Ego Took a Deal from $30M to $1.2M appeared first on Business Exit Stories.

How an Entrepreneur’s Ego Took a Deal from $30M to $1.2M

A profitable HVAC company decided to explore selling their business because COVID had escalated valuations in the HVAC sector since more people were staying home and needed more heating and air services. Shortly after deciding to sell, a Private Equity Group approached the company and began their acquisition and due diligence. Financial buyers like a […] The post How To Sell Your Company For Less Money But End Up Putting More Cash In Your Pocket appeared first on Business Exit Stories.

How To Sell Your Company For Less Money But End Up Putting More Cash In Your Pocket

An orthopedic footwear manufacturer was able to weather a series of unexpected events, failed closings, and a complete shutdown during the pandemic to successfully exit the business. A seller went from a DIY mode to engaging a professional advisor to facilitate their exit and this decision made the founder an additional $20M in the process, […] The post How Doing the Right Things Turned a $20M Sale into a $40M Sale appeared first on Business Exit Stories.

How Doing the Right Things Turned a $20M Sale into a $40M Sale

An e-commerce business where some of the metrics on the financial statements just didn’t seem to add up. One of the issues had to do with the gross margins on some of the products sold being north of 75%, which was far above the norm for this business segment. This issue caused the buyer to […] The post When Issues Surface in Due Diligence, You May Wish to Take A 2nd, 3rd, and 4th Look At Other Critical Aspects Of The Business appeared first on Business Exit Stories.

When Issues Surface in Due Diligence, You May Wish to Take A 2nd, 3rd, and 4th Look At Other Critical Aspects Of The Business

A chemist that solves a problem his wife had with some of her hair and cosmetic beauty products line while working full time. His side hustle turned into a business that exploded into a $19M business virtually overnight. Hyper growth when scaling nearly forced an early exit and disaster was averted.  An absentee owner business […] The post From Making Money as a Side Hustle to a $19M Business Losing Money appeared first on Business Exit Stories.

From Making Money as a Side Hustle to a $19M Business Losing Money

A specialty heavy equipment company that dominated a highly profitable niche decided to sell. A private equity firm suggested by the M&A advisor expressed interest and made a generous offer. However, the seller’s attorney had dealt with this Private Equity from before and had formed some opinions on them. What shouldn’t have happened, ended up […] The post Going from a Meager Six Figure Walk Away Exit Offer to Millions Plus a Second Bite of the Apple on a Subsequent Sale appeared first on Business Exit Stories.

Going from a Meager Six Figure Walk Away Exit Offer to Millions Plus a Second Bite of the Apple on a Subsequent Sale

An entrepreneur decided to sell his business, and then when he was at the closing table, backed out. He did this not once but twice. Three partners with equal ownership in a business they ran for decades had different goals and objectives which caused an extended five-year process of getting the business sold. Russian immigrants […] The post How An Entrepreneur Exited Their Business After A Cancer Diagnosis appeared first on Business Exit Stories.

How An Entrepreneur Exited Their Business After A Cancer Diagnosis

A business owner’s lack of transparency with his M&A Advisor ended up taking his business sale from a sure deal to zero and the IRS killed this deal without breaking a sweat. A buyer walked away from a deal allowing the seller to re-sell the business again in a matter of months and keep all […] The post How the IRS Can Kill a Deal Without Breaking a Sweat appeared first on Business Exit Stories.

How the IRS Can Kill a Deal Without Breaking a Sweat

Why working capital requirements can often be used strategically by buyers as they are designed to reduce the effective sales price of a business. Unaware sellers can be surprised when they end up with a lot less than they anticipated because they allowed the working capital to be manipulated either by how working capital was […] The post How A Business Went From $50 Million In Sales To Ceasing Operations And Still Got Sold. appeared first on Business Exit Stories.

How A Business Went From $50 Million In Sales To Ceasing Operations And Still Got Sold.

Although a comprehensive tax plan was painstakingly crafted and designed, a client went dark for nearly nine months. Less than a week before the sale was to take place the client called and asked if everything was ready to go. A significant portion of the tax planning strategies that had been crafted couldn’t be executed […] The post How A Tax Plan Can Save Millions In A Business Sale appeared first on Business Exit Stories.

hubhopper

Business Exit Stories

hubhopper