What Happens When Employees Find Out You’re Selling Your Business
When a mid-market software company’s CFO casually mentioned an upcoming transaction to a trusted senior developer in 2023, the owner assumed discretion was implied. Within 72 hours, twelve of seventeen engineers had updated their LinkedIn profiles to “open to opportunities.” The buyer, conducting final due diligence, discovered the exodus through routine reference checks. The purchase […]
Private Equity Concerns: How Founders Can Protect Their Companies During a Sale
The decision to sell to private equity represents one of the most consequential moments in a founder’s career. While PE firms bring capital, operational expertise, and growth resources, many entrepreneurs harbor legitimate anxieties about what happens after the transaction closes. The fear of losing control, watching company culture deteriorate, or witnessing aggressive cost-cutting measures dominates […]
Sell-Side Due Diligence
Home / Resources / Sell-Side Due Diligence SELL-SIDE M&A ADVISORY Sell-Side Due Diligence: How Proactive Preparation Protects Valuation and Accelerates Closing Every issue a buyer discovers during their diligence review becomes a negotiating lever, a reason to reduce price, widen indemnification, or restructure terms. Sell-side due diligence identifies those issues first, on the seller’s timeline, […]
EBITDA vs Net Income: Key Differences, Metrics, and Insights
When you’re looking at financial metrics, it’s easy to get lost in the details. EBITDA focuses on operating performance, while net income shows the whole financial picture after every expense. EBITDA measures earnings before interest, taxes, depreciation, and amortization, while net income is the final profit after all costs. This core difference makes each metric […]
CARR vs ARR: Key Differences, Formulas, and Business Impact
Subscription businesses often wrestle with picking the best revenue metric to understand their financial health and growth. CARR and ARR both track recurring revenue, but they highlight different aspects of a company’s performance. CARR scoops up future contracted revenue and expected churn, while ARR only looks at current active subscriptions. So, CARR is more forward-looking, […]
Stock Sale vs Asset Sale: Key Differences, Benefits, and Tax Impact
When business owners decide to sell their company, they face a big decision between two main transaction structures. Asset sales are generally more favorable to buyers, while stock sales are more advantageous to sellers because of the way each is treated for tax purposes. This fundamental difference shapes every aspect of the deal negotiation. In […]
Business Valuation Cost: What Affects Price & How to Choose
Getting a business valuation is a must if you’re planning to sell, attract investors, or deal with legal stuff. But wow, the price can swing a lot. A business valuation usually runs anywhere from $2,000 up to $40,000, depending on how complicated your business is, the valuation type you need, and how fast you need […]
How Much Can I Sell My Business For? Key Factors & Valuation Methods
Selling a business is a huge financial move, maybe the biggest one you’ll ever make. But let’s be honest, most owners have no idea what a realistic sale price looks like. The process itself, from preparation through close, is covered in How to Sell a Business. Most businesses sell for 2 to 4 times their […]
Fair Value vs Market Value: Key Differences and Accounting Impact
Valuation Fair Value vs Market Value: Key Differences and Accounting Impact Fair value and market value are not the same number. Each answers a different question, and the distinction changes how assets are reported and how a private company is priced when it is sold. By Jeff Barrington, Founder and Managing Director · Last reviewed […]
What Is Net Revenue Retention? How It Works & Why It Matters
Most businesses wonder if they’re really growing revenue from existing customers, or just plugging holes left by churn with new sales. Net revenue retention gets straight to the heart of this by showing the full story of customer revenue over time. Net revenue retention measures the percentage of recurring revenue a company keeps from existing […]