Understanding Terms: Main Street vs. Middle Market

We often throw around the terms “middle market,” “lower middle market,” and “Main Street.”  These are pretty common terms in the finance, banking, and M&A world, but probably less so to most business owners and entrepreneurs.  For the sake of clarity we thought we’d dive in.   Defining Main Street vs. Middle Market It seems […]

What is working capital? Why negotiate a working capital adjustment in your purchase price?

When a buyer values a target company, the buyer’s valuation is based on the target company’s financial condition on a specific date.  In most instances, several months pass between that initial valuation date and the closing date, when the buyer acquires the target company.  Purchase price adjustments need to be negotiated to reflect changes in […]

Understanding Seller’s Discretionary Earnings

You have decided to get a valuation on your business. It’s time to sell, or maybe you have received an unsolicited offer and are looking for a way to increase the value of your business. You want to retire from the grind and receive a fair price. Still, you know that your $150,000 salary, equipment […]

Value Gap: What Is It and How to Close It?

If you were to sell your business tomorrow, do you know how much you could get out of it? Whether you plan to sell your business soon or much later, or even if you haven’t considered this option so far, knowing your company’s value is always a good place to start. You are never immune to […]

Tax Benefits from Converting from a C-Corp to an S-Corp

  The business structure of your company has a huge impact on the taxation of your firm’s profits. A C-corporation (C-corp) structure, for example, has several drawbacks that generate a higher tax on company profits over time. If your business was formed as a C-corp, you can convert to another form of ownership and reduce […]

What Data is Required for a Valuation?

So, you’re a middle-market entrepreneur or a business owner looking for information about selling your business. If that’s the case, you probably already know you need to get a business valuation. That’s where Quantive comes in. Your reasons for needing the valuation could range from preparing for retirement to a divorce asset settlement. In between […]

Make Your Business Valuation a Priority

Valuation enhances your business plan when it comes to the company’s general well-being and how it fits into your exit planning strategy. It gives you the vision and direction to enhance the value of your company, so you can achieve your business transition objectives. By prioritizing valuation, you understand the market value of your company. […]

The Unsolicited Offer: What to Do?

So you’ve received an offer to purchase your business. Perhaps a competitor asks you to lunch and casually broaches the subject. Or a vendor makes an overture to acquire your company. Maybe a business broker calls and has a client that wants to make an offer to purchase your business. As a valuation firm, we […]

Valuation Approaches: Choosing one for 2022

As the new year approaches us, the closing of your annual books and yearly business valuations are as well. Before your valuation, it is essential to note the different types of approaches one can take. The Asset Approach The Asset Approach is a valuation methodology that concludes to value based on a business’s balance sheet […]

The Buy-Sell Agreement: 9 reasons you need one

When forming a business, one of the first things every entrepreneur should think about is their ultimate exit. For most, this is the farthest thing from their mind.  As any corporate attorney will tell you, in the same way, you would plan to protect your children with the creation of a will. Your business should […]