Articles

Transactions are major decisions in the life of a business, for both Sellers and Buyers. In a standard transaction a Buyer will request money from the purchase price be held in escrow. And, while I’ll admit there is a strong argument justifying those types of requests, there are also viable alternatives. First, why do Buyers […]

“Take Care of Key Employees When Selling Your Business” We had found the perfect buyer, a strategic in the same industry. It looked like this transaction had a good chance to close. The owner of this successful Twin Cities business, who was living in another state, had done a nice job of removing herself from […]

That famous business owner question … what is my business worth, really means how much will I get in my blue jeans.? Total Proceeds Typically, there are 3 main contributors to Sellers’ total proceeds: Offer Price – Cash at closing and any Promissory Note; Final Adjustments – including excess transferred Working Capital settlement payment after […]

As I sit down and attempt a recap of the recently concluded Charlotte conference, I realize that anything I talk about to those who were not in attendance is like serving the leftovers of a great meal.  It just isn’t going to be the same.  It will be a dry recast of a class or […]

This is the second part of Blue River’s educational series entitled “Straight Talk to Owners About Business Valuations”  written by Blue River’s Managing Partner, William Loftis. The series is designed to help middle market business owners and their transaction advisors (i.e., attorneys, CPAs, investment bankers, M&A brokers, and others) appreciate the importance of accurately understanding business value before going […]

These matter to you on so many levels, please read. If you include SBA financing in your transactions, then you must have heard about the many changes going into effect on August 1st of 2023 in SOP 50-10-7. Many posts are promoting these changes as beneficial to our industry, but today I will explain the […]

It was only a few years ago that many “Baby Boomer” business owners were beginning to strategically position their businesses for eventual sale. Unfortunately for many of these owners, the economic upheaval postponed their retirement schedules as caution pushed potential buyers to the sidelines. Navigating recent difficulties has left these business owners a bit older, […]

An earnout represents just one of many contractual provisions structuring the sale of a business. That sounds pedestrian enough at first but, because this provision states that the seller can secure additional compensation in the future if the business achieves certain financial goals once sold, there’s a lot at stake. And the significance can run […]

When people say, “Let’s be reasonable” I often wonder….what exactly is reasonable? Reasonable to whom? When referring to the IRS “reasonable salary” requirement of S-Corp owners, that answer has been a bit mysterious Until now. If you are being taxed as an S-Corp I encourage you to spend some time and even some money, to […]

Blue River Financial Group – When middle market business owners place their privately held companies for sale, they soon discover the market is the final determiner of value, not appraisers, CPAs, or even their own opinions. The market can delight or disappoint depending on an owner’s expectations. Disappointment inevitably arises when the highest offers received […]