Contact

To contact Sheila Spangler:

s.spangler@murphybusiness.com

Office:    208-286-2300
Mobile:  208-343-7007

Popular posts from this blog

What's Goodwill Got to Do With It?

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The other day an attorney friend said in his best Scrooge-like voice, “I don’t like goodwill.” Because we were discussing business sales, I knew he wasn’t referring to the happy, peaceful, holiday goodwill. He meant business goodwill except he called it “blue-sky”. Contrary to popular belief, the word blue-sky is not synonymous with goodwill. Goodwill has more than one meaning especially at this time of year, but blue-sky isn’t one of them.   My attorney friend was confusing something of no value (blue-sky) with a sale-able asset (goodwill). While some owners do have blue-sky dreams, the buyer purchases goodwill and tangible assets when a business is transferred in an asset sale.  According to Merriam-Webster’s dictionary, Goodwill is:  1)     a kindly feeling of approval and support; benevolent interest or concern;  2)     the favor or advantage that a business has acquired especia...
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Why You Need to Know What Business Buyers Want

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  As a business owner, you may have one or more choices when it comes to exiting your business.  You'll either pass it on to a family member, sell it to a third party or shut it down. Generally, your business will have a different value in each of these situations.  Isn't it a good idea to know how much your business is worth now so you can decide which choice is best for you when the time comes? Recently, I spoke with a business owner with a 20-plus year track record who is considering a sale of his business. In his opinion, he has two options. One option involves selling to a family member.   The other possibility is to sell to a larger company.  I explained that one choice might bring a higher value. And the important thing to know, is which one.   There are several types of buyers : •     Financial buyers – motivated by income, usually individuals. They focus on companies with revenues under $10,000,000. These make up the bu...
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How to Increase the Odds of Selling Your Business

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You may be surprised to learn that if you want to sell your business, there is about a one in five chance of actually achieving that goal. Even with strong financial performance, sometimes businesses with less than $1,000,000 in revenues don’t sell.  According to BizBuySell, the largest online business-selling platform: only 20% of all of the businesses listed for sale ever sell, roughly 50% of the deals agreed to between buyer and seller never close only 10% of sales are handled by business brokers  The last fact may explain the first two! Here's my list of Why Businesses Don’t Sell: Seller believed the business was worth more than valuation showed and wouldn’t negotiate on the price or terms.    Seller wanted all cash and was unwilling to carry part of the financing. Buyer liked the business but it failed the “rule of thumb test” meaning that the cash flow was insufficient to pay the acquisition debt payments and provide the buyer with a...
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