When Karen Enloe began considering selling her Asheville- based pottery distribution business, The Pottery Market, she knew she needed the right exit strategy. She had worked hard for many years in the business and was looking forward to a new chapter in her life. Karen turned to Eric J. Mckeehan and Jeff McKeehan of Viking Mergers & Acquisitions of Asheville to develop the right plan to accomplish her goal of successfully selling the business. With their guidance, she was able to select the perfect buyer, and navigate from offer to closing. Both the ..read more

Growing the value of a business is a critical concern for any entrepreneur or business owner. Entrepreneurs commonly hear that a company will be worth 3-5x (or some other range of multiples) of the EBITDA or other financial indicators. But what differentiates earning the high end of that range from the low? And how can you move your business from 3x to 5x to 7x?  You differentiate your business — and increase its sale price — by removing as many doubts, questions, and risks as possible for a potential buyer. (The inverse of risk is the multiple a buyer pays.) While many factors can infl ..read more

The closest thing most small business owners have to a business valuation is a speculation. If that sounds like you, you are far from alone. A recent bank survey revealed that 98% of small businesses can’t put a figure on their company’s value. If the majority of your personal net worth is invested in your company (which is the case for the majority of business owners) that means your business is your most valuable asset – which makes it worthwhile to know its fair value. Why Do The Math? Lack of valuation information limits your awareness of the financial health and well-being of your busin ..read more

Overall, working with a business broker is the best way to sell your business fast. Business brokers specialize in the buying and selling of businesses, and they can save you a great deal of trouble compared to selling on your own. Be sure to follow these 5 foundational steps: 1. Determine how much your business is worth. Having a thorough, representative business valuation is essential to pricing the business well, selling it quickly, and not leaving money on the table. Make certain that you choose business brokers who have a well-tested valuation process and a track record of successfully ..read more

Mergers and acquisitions are often discussed together, but the terms are not actually interchangeable.  The term merger refers to a strategic process whereby two or more companies mutually enter a legal agreement to form a new business entity.  Large scale examples of mergers include the 1998 merger of Exxon Corp and Mobil Corp to become Exxonmobil, and more recently, the 2015 merger of H.J. Heinz Co and Kraft Foods Group Inc to become Kraft Heinz Company. You may also be familiar with failed examples of mergers like AOL and TimeWarner or Daimler Benz and Chrysler, neither of which ..read more

Dee and Maureen Hamilton had worked hard for many years building up their business, Hamilton Electric & Plumbing, based in Pawley’s Island, SC. After being asked by friends when they were going to retire, Dee and Maureen began to think about and discuss their plans for the future. Dee recognized that his knowledge about the process of selling his business was limited and he knew that he needed expert help and advice to navigate the process. He reached out to Ben Knight of Viking Mergers & Acquisitions to better understand his options. As a first step, Ben conducted a business valuatio ..read more

How many times revenue is a business worth? It depends. Many factors influence the answer to that question, including industry, current market trends, and the economic climate. Although a number of valuation methods can (and should) be used to determine a company’s value, specifically answering the question, “How many times revenue is a business worth?” is a function of the Times Revenue method (sometimes called the Multiples of Revenue method). What is the Times Revenue method? The Times Revenue method is used to determine a range for a business’s current value based on its future profitab ..read more

Entrepreneurs sell their businesses for a variety of reasons. Regardless of your “why,” if you have decided that the “when” is now (or soon), what should you do next?  Get Familiar With the Process First, familiarize yourself with the selling process. It will be helpful to have a general understanding of the process as you engage with your Broker/Advisor of choice. The selling process involves the following parts: Valuation Confidentiality Buyer Vetting Marketing Broker/Advisor Weekly Updates Deal Structures Letter of Intents/Offers to Purchase Due Diligence Closing Documents Unde ..read more

This much is clear: defining Key Performance Indicators (KPIs) for your business is essential. What is less clear: identifying which performance indicators are indeed key for your particular business. There are many useful KPIs, and we believe there is one KPI in particular that will benefit every business owner, regardless of industry, location, or size. Identifying KPIs The most successful businesses track and regularly review KPIs, but not all KPIs are critical to every business. Track the KPIs that report on important operations of your business.  What are your business objectives ..read more

It is a great time to own, buy, or sell a business in Knoxville. The Small Business Administration has stepped up their efforts to make acquiring a business more obtainable in the short term. Also, the current tax structure is as advantageous for a seller as it likely will ever be. We are seeing a surge in buyers looking for companies who have been able to withstand the impact of COVID-19, and due to attractive features like expansion opportunities, high dollar jobs, and the expected resurgence in both residential and commercial construction activity.Within the service realm, one of the most ..read more