“Should I sell now?”

“Should I sell now?”

September 27, 2019 | Susan Rosner

Should I sell now?

Here’s one tell-tale sign you should sell your company

If you started and own your own business, then it is only you who truly understands how much time, effort and money you’ve poured into it. No one else will invest in it as you have.

However, if you’re lucky enough for your company to succeed and flourish, there may come a time when someone else will find enough value in it to buy it – and therefore, be the one to risk the time, effort and money like you have.

But how do you know when it’s time to sell your company? Here’s how it worked out for one New Jersey-based company:

PTM Inc.

Started back in 2000, PTM Inc. was a reseller of web conferencing. Continuously searching for the right path to take, the owner eventually decided to sell learning management software, and it worked out very well.

Fifteen years later, the company received an acquisition offer from a large private equity company. The owner was unsure of what to do. This company was his pride and joy. He put in the blood, sweat and tears to get his company to where it is today. On the other hand, the offer was quite generous, to say the least.

After giving it plenty of careful thought, the owner of PTM Inc. came to the realization that he was taking fewer risks as of late. As his business grew, he became slightly more conservative because he didn’t want to risk losing what he had built.

Conversely, the potential buyer was willing and ready to take a big chance by integrating PTM Inc. into another one of its acquisitions. The current owner’s penchant for taking chances with his own business was now than that of this potential acquirer. It was at this point that the owner decided to accept the compelling offer.

To Sell or Not to Sell

Everyone has a different idea of how much money they want or need. It could depend on what kind of lifestyle you grew up accustomed to, or any other reason. Therefore, the scenario of a potential buyer being willing to risk more than you, the current owner, can happen at a different time depending on the current owner’s particular goals.

Whenever that time comes, it’s a sign that your company is in need of a new owner. If you think it might be the right time to sell your company, whether you’re in in Philadelphia County or anywhere else in the world, contact us at Calder Associates. We can help you prepare your business by increasing its value and making it more attractive to potential buyers – so you get the most out of it. Call 800-419-5754 at your convenience.

About the broker blog

The Blogger- Susan Rosner

Susan is a Managing Partner in Calder Associates and is responsible for Calder’s Pennsylvania, Delaware, and surrounding area. Susan’s past experience has served hundreds of business owners and buyers in their pursuit to sell or acquire the right business. A past President of the Lower Bucks Chamber of Commerce, business coach, and speaker at local business events and exit planning conferences, Susan has helped thousands of companies and individuals to success!

Why Choose Calder?

Why Choose Calder?

May 29, 2018 | Susan Rosner

Why Should I Choose Calder Associates to Represent me in the Sale of my Business?

The mergers and acquisitions intermediaries at Calder Associates, with offices in Pennsylvania, New Jersey, and Maryland, engage with national and global business owners who are looking to sell. We work closely with our clients to help prepare them to sell while managing the details and process until the sale is completed. We only select companies that are financially, organizationally, and operationally sound to successfully complete transactions.

About the broker blog

The Blogger- Susan Rosner

Susan is a Managing Partner in Calder Associates and is responsible for Calder’s Pennsylvania, Delaware, and surrounding area. Susan’s past experience has served hundreds of business owners and buyers in their pursuit to sell or acquire the right business. A past President of the Lower Bucks Chamber of Commerce, business coach, and speaker at local business events and exit planning conferences, Susan has helped thousands of companies and individuals to success!

7 Strategies for Preparing a Privately Held Business for Sale

7 Strategies for Preparing a Privately Held Business for Sale

May 25, 2018 | Susan Rosner

7 Strategies for Preparing a Privately Held Business for Sale by Calder Associates

As experienced mergers and acquisitions advisors based in Pennsylvania, New Jersey, and Washington, D.C., we have helped countless business owners with the sale of their businesses all over the world. Our ebook, 7 Strategies for Preparing a Privately Held Business for Sale, illustrates some of the methods we use to facilitate these transactions.

Need assistance with mergers and acquisitions? Our New Jersey, Pennsylvania, and Washington, D.C. offices are here to help – no matter where you are located. Call 800-419-5754 to experience the Calder difference today!

About the broker blog

The Blogger- Susan Rosner

Susan is a Managing Partner in Calder Associates and is responsible for Calder’s Pennsylvania, Delaware, and surrounding area. Susan’s past experience has served hundreds of business owners and buyers in their pursuit to sell or acquire the right business. A past President of the Lower Bucks Chamber of Commerce, business coach, and speaker at local business events and exit planning conferences, Susan has helped thousands of companies and individuals to success!

Why You Should Be Offering A Subscription Service

Why You Should Be Offering A Subscription Service

November 9, 2017 | Susan Rosner

Why You Should Be Offering A Subscription Service

Retail markets have been engulfed by a world of subscription services. Anything you can think of, from clothing to groceries, can be had on a subscription basis.

Why? Among other reasons, customers are busier than ever, and prioritize convenient, “set it and forget it” access to goods and services. As business brokers with clients in Philadelphia County, PA, Baltimore, MD, and throughout the States, we’ve been keeping an eye on the national subscription trend and what it means for our clients, especially in terms of annual revenue, value, and company longevity.

A Steady Revenue Stream

First and foremost, offering a subscription service to customers creates a consistent revenue stream. Keep in mind that the benefits may not be immediate: In the case of month-to-month subscriptions, it may take months or years for you to recover the cost of gaining a subscriber. However, as we’ll explain in a moment, the long-term benefits can be huge.

In the meantime, one way to avoid the waiting game presented by month-to-month subscriptions is to charge customers a subscription fee for the entire year. By doing so, you are making an up-front profit from your new customer and won’t find yourself starved for cash.

Long-Term Value

The addition of a subscription service truly pays off when it’s time to seek broker services for the purpose of selling your business. Business owners from New Jersey to California find that when it comes time for a business valuation, the presence of a subscription service increases the value of their business significantly. The dependable revenue stream created by the subscription service translates into long-term value, in turn making it more attractive to potential buyers.

Strengthening Brand Loyalty

When customers find themselves committing to an annual subscription, they are more likely to stay loyal to your company, out of a desire to get the most out of their investment in you. This core “fanbase” of dedicated subscribers will be incredibly attractive to potential buyers of your business – and will bolster the long-term success of your legacy after you pass your business on.

Subscription services are an excellent way to give customers what they want and keep them loyal to your brand, all while creating a satisfying stream of revenue that can maximize the value of your business.

Are you thinking of selling your business? Not ready yet, but looking for strategies to maximize value? Our Value Builder Score questionnaire and free e-book can provide invaluable insight. Contact Calder Associates today to learn more about how we can help.

About the broker blog

The Blogger- Susan Rosner

Susan is a Managing Partner in Calder Associates and is responsible for Calder’s Pennsylvania, Delaware, and surrounding area. Susan’s past experience has served hundreds of business owners and buyers in their pursuit to sell or acquire the right business. A past President of the Lower Bucks Chamber of Commerce, business coach, and speaker at local business events and exit planning conferences, Susan has helped thousands of companies and individuals to success!

How to Gauge If Business Owners Are Ready to Sell

How to Gauge If Business Owners Are Ready to Sell

October 9, 2017 | Susan Rosner

How to Gauge If Business Owners Are Ready to Sell

When an M&A firm is devoted to selling—not simply listing— businesses, they take the time to assess the likelihood that a business will be saleable. At Calder Associates, we have formulated a process for selecting the businesses we want to work with. After assessing that a business is indeed saleable, we posit two crucial questions to a business owner:

I. Are you realistic about your selling price?
II. Are you truly ready to sell?

If we hear a resounding “YES,” and we believe the market is receptive, we proceed with the signing of an agreement. Nonetheless, as our firm has learned, a business’s viability on the market can always change. Under financial pressures or losses of personnel, desirability is not a certainty.

An Anecdotal Indicator

Our Mergers and Acquisitions firm is working with a 75-year-old business owner focused on retirement. Since signing an agreement with this client, his business has had a 25% drop in sales. Accordingly, the offers from buyers have been lower than what had originally been agreed to; frustrating the owner. He argues that the value of his business is in the business that he has built over 30 years; not the way it’s currently performing. We sum this up as: our client wants to be paid for his efforts.

All businesses, regardless of the industry, are valued according to their EBITDA or “earnings before interest, tax, depreciation, and amortization.” The more financially successful a business is, the higher its valuation. Despite how venerable it may be, a business’s legacy has no bearing on its valuation if the business performance is declining. In the case of our client, he requires at least a 25% increase in sales and a 50% increase in EBITDA to obtain the selling price he envisions.

Take the Deal!

Unless they’re prepared to maintain and market their businesses for years, owners have to make a decision. Dismissing a buying offer, during a period of underperformance, can have disastrous consequences if there is no plan to turnaround performance. For an owner that is burnt out and not able or willing to commit to growing the business, accepting a deal that’s 20% below expectations can be the best deal that they can get. Rather than risk further decline in performance and value, an owner can still retire comfortably, while retaining loyal employees, and providing ongoing service to long-term customers.

At Calder Associates, we can confidently say that 99% of clients regret passing up on such a deal because in retrospect it was the best deal that they could get. The best advice that we can give is when a business owner is ready to sell, be realistic about selling price

About the broker blog

The Blogger- Susan Rosner

Susan is a Managing Partner in Calder Associates and is responsible for Calder’s Pennsylvania, Delaware, and surrounding area. Susan’s past experience has served hundreds of business owners and buyers in their pursuit to sell or acquire the right business. A past President of the Lower Bucks Chamber of Commerce, business coach, and speaker at local business events and exit planning conferences, Susan has helped thousands of companies and individuals to success!