February 2009                                                              

   Cashing In!
 
Selling Your Company For Maximum Profit
  

    
                                                                Douglas Group


Why Profit Isn't The Only Factor
that Affects Selling Price

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Is the amount that a buyer will someday pay directly related to company profitability? Yes and no. The amount that the buyer will pay is a direct corollary of two factors:

1)  The buyer's estimate of what profit HE will be able to produce by operating your company, and

2)  The buyer's perception of the likelihood of competition beating his offer.

Except in cases of newly emerging proprietary technology, the buyer's estimate of profit potential is almost always linked strongly to history. Of that history, clearly the most important element is the most recent time period. Nevertheless, ideally, in preparing for sale, you would like to build....      READ ON>>>

Written by Deborah Douglas, Managing Director of the Douglas Group, a St. Louis-based private investment banking firm which represents sellers of middle-market companies. Ms. Douglas is also author of "Cashing In," (2004).   For more information, contact her at ddouglas@douglasgroup.net or  call 314-991-5150.

How To Know When It's Time
To Sell Your Business
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Owners have the tendency to contemplate sale when they are nervous or tired or both. Naturally it is most tempting to exit when you're less than pumped up about your future. When two semi-major disasters have fallen from the sky, and sixteen more have threatened, the owner begins to think about getting out while the getting's good. The ever-present risk of business ownership begins to weigh heavily.

In the immortal words of one our clients, "Every time I think I'm winning the rat race...along comes a faster rat."


When is the best time to sell in order to maximize value?
READ ON>>>

Written by Deborah Douglas.  For more information, contact ddouglas@douglasgroup.net or call 314-991-5150.


More Articles By Debbie Douglas
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We've created this newsletter to share timely and relevant industry expertise on buying and selling businesses. Here we share stories, anecdotes, and expertise in the world of business sales; also known as mergers and acquisitions. We can also provide other educational resources such as webinars, audio CDs, industry books, and consultations. We're always eager for and appreciative of any suggestions or feedback you may have. Thanks for reading. We would enjoy hearing from you.

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DOUGLAS GROUP

Issue 13
In This Issue
Profit's Impact on Price
More Articles
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Free Value Assessment

By knowing what causes value and how great deals are made, you can put your company in position to someday be the source of enormous personal wealth. We can show you the key control points to maximize business value, to solidify your business foundation, and to eventually ensure top value in your company.  Just visit our website at www.douglasgroup.net.


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Discusses how to
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MAXIMUM PRICE!

Topics include:

Owning a Salable Company
vs. Owning "A Job"

Why & When To Sell

How Competition Increases
Selling Price--Significantly!

The Secret Benefit of the Intermediary Shield


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