Net Working Capital: The Secret to a Smooth Business Sale
By John Marsh While it may sound like an accounting concept, net working capital plays a direct role in how much cash a seller actually takes home at closing. It can lead to unexpected adjustments, last-minute negotiations, or friction between buyer and seller if not properly addressed early in the process. In this article, we’ll […]
Your Exit Multiple Is Being Determined Right Now — Probably Earlier Than You Think
by Carl Nicpon Many business owners assume the value of their company is determined when the business goes to market. In reality, the multiple is shaped years earlier — before most owners start thinking about their exit. The operational decisions you make today influence how buyers will evaluate the business later: how dependent […]
Rollover Equity Explained: Maximize Your Sale Proceeds
By John Marsh One of the most common structures in M&A deals is rollover equity. This is when a seller “rolls” a portion of their ownership into the new company instead of taking all cash at closing. In other words, they stay invested alongside the buyer, often to participate in a second, future exit. While […]
Seller’s Discretionary Earnings Vs EBITDA: What’s The Difference
By John Marsh When preparing to sell a business, one of the first questions a buyer will ask is: How profitable is it? The answer isn’t always as simple as looking at net income. Two of the most common metrics used to assess earning power, discretionary earnings and EBITDA, can paint very different pictures of […]
How Much Do Brokers Charge To Sell A Business
When considering a sale, one of the first questions owners ask is: “How much do brokers charge to sell a business?” It’s a natural starting point. Broker fees can vary significantly based on deal size, services offered, and how those services are structured. Some brokers charge large upfront fees. Others work entirely on commission. And […]
What is a Classified Balance Sheet and how it Impacts Your Company’s Sale Value
BY JOHN MARSH In M&A, financial clarity builds confidence and smooths out each step of the sales process. A classified balance sheet presents a powerful tool for presenting your company’s financial position. It brings structure to your numbers, and makes it easier for buyers to evaluate your business during diligence. In this article, we’ll walk […]
Confidential Information Memorandum (CIM): The Seller’s Most Powerful Tool in M&A
BY JOHN MARSH In M&A, deals rarely fall apart over price alone. More often, the problem is poor positioning, unclear messaging, or a disconnect between seller and buyer expectations. One of the best ways to prevent this is with a strong Confidential Information Memorandum (CIM). A well-crafted CIM sets the tone for the entire sale […]
What is EBITDA for a Business Sale?
BY JOHN MARSH EBITDA — Earnings Before Interest, Taxes, Depreciation, and Amortization — is one of the most commonly used metrics in business valuations. But when it comes to selling a business, understanding Adjusted EBITDA is just as important. In this article, we’ll break down what EBITDA really means, how it’s calculated, what adjustments buyers […]
A PowerExit – Critical Steps to Controlling the Sale Process
BY JOHN MARSH If you’re an owner considering an exit, one of the first questions that comes to mind is: How do I price my business for sale? At Marsh Creek Advisors, our answer is simple: you don’t. We don’t put price tags on the companies we represent. Instead, we run a structured, competitive process […]