A deal may first look attractive on paper. However, without digging deeper, you may risk problems that are not immediately visible. We recommend always being curious. Ask direct questions, as this will give you a clearer picture of what you are actually buying and help you avoid surprises later. Let’s take a closer look at how to best evaluate a business through asking questions. Examine the Asking Price It is a good idea to consider how the seller determined the asking price. The explanation should be clear and supported by solid financial data. If the reasoning feels vague or unsupported, it could be a strong signal to proceed carefully. Transparent and well-documented financials are at the basis of any sound acquisition, and reviewing them thoroughly should be a priority from the outset. Understand Seller Motivations You will also want to try to understand the seller’s motivations. If the business does not sell, what will the owner do next? If you can get answers to … [Read more...]
Archives for May 2026
The Evolving Realities Around Succession in Family Businesses
A decade ago, research suggested that only about 28% of family businesses had a formal succession plan in place. While awareness has improved, the underlying challenge remains remarkably persistent. Recent studies from organizations such as PwC indicate that today, only around 30–35% of family businesses have a documented succession strategy. This means that most family businesses are still figuring out their transition planning path without a clear roadmap. This lack of preparation is rather striking. Consider the fact that family-owned businesses continue to account for roughly 70–90% of businesses globally. This figure has remained relatively stable over the years. Yet continuity across generations has not improved at the same pace. Those figures reveal how difficult it remains to sustain a business beyond its founder. If you are a family business owner considering a sale, the fact of the matter is that the complexities are often greater than they are in non-family firms. This is … [Read more...]
Why Early Exit Planning Matters for Business Owners
New business owners often are thinking about growth and working to increase revenue. While this is no doubt important, many people overlook a critical part of long-term success, and that is planning how they will eventually leave the business. The truth is that exit planning is most effective when it becomes part of your strategy from the beginning. A common assumption is that selling a business is simple. But in reality, it can take years to find the right buyer. Without proper preparation, owners may feel like they have less options down the line. They may feel stuck or even forced into decisions that do not meet their goals and expectations. The good news is that planning ahead gives you the opportunity to shape your business into something that is both profitable and attractive to future buyers. Establish a Business to Operate on Its Own One of the most important elements in selling a business is making sure it can operate successfully without you. Buyers want confidence that the … [Read more...]