Private company financing is in many ways easier to get as you don’t have the regulatory hurdles you would as a publicly traded company on a stock exchange. The most important reason why some companies stay private instead of going public though is being able to keep control of the business, making decisions which generally are best for the long term success of the organization.
Growing up in a small business environment, watching your parents work harder and harder to make a good life for us as children I believe that my parents probably worked too hard and didn’t give themselves the opportunity to maximize the value of their businesses before retiring.
Succession planning should start earlier, not at age 65 [...]
Myth 1: The value of my business can be generally determined by using an earnings multiplier of my industry. ie. 3 times EBITDA
This is the most common myth. The earnings multiplier can be useful to get an overall general value based on the industry, but it doesn’t apply to all businesses within the [...]
In the sale or purchase of a private company its still necessary to use best practices in order to have the parties feel good about the transaction. Using the services of a corporate financial advisor, a tax accountant, a corporate lawyer who work together as a team from the beginning will provide you with the [...]
