Dave Kauppi's Articles

Selling a Business, New Rules for Merger and Acquisition Success
In today's environment the methods that middle market MandA firms used to complete business sale transactions no longer work. This article discusses the new approach necessary to get the visibility necessary to complete the sale of a privately held business.
Sell or Keep Your Business - The Numbers May Surprise You
Many business owners simply are too emotionally tied to their businesses to analyze it the way they would another investment. This article provides a framework that a business owner can use to dispassionately examine the cost / benefit of owning his business.
Selling Your Business - Beware of the 'We Have Qualified Buyers' Pitch
A business owner client that is selling her business handed me a letter she received from a competitor telling her that he had a buyer for her business. This article explores this unfortunate bad practice in the business broker industry.
Selling Your Business - We Have Qualified Buyers
When business owners interview merger and acquisition firms to sell their business, they are often pitched, 'We have lists of qualified buyers.' Well, there are lists and there are lists. This article will help you determine which firm to hire based on their list.
Sell a Business, Key Factors for a Successful Exit
The purpose of this article is to discuss several key factors that a business owner should consider in their once in a lifetime opportunity to maximize the rewards from their lifetime of work with the sale of their business.
Sell a Business, Keys to a Successful Exit
The purpose of this article is to discuss the ten key factors that a business owner should consider in their once in a lifetime opportunity to maximize the rewards from their life's work with the sale of their business.
Financial Advisors - It's Time for Some Difficult Discussions with Your Business Owner Clients
Record numbers of baby boomers will be exiting their businesses over the next 10 years. Most of them have not done the proper planning to maximize the value or to pass it on to the next generation under favorable conditions. Financial Advisors have an opportunity to help their clients improve the outcome. This article discusses the issues and the role of the trusted advisor in that process.
The Unsolicited Offer to Buy Your Company -What Should You Do
If you are approached with an unsolicited offer to buy your business be careful. Often times it is a bottom feeder looking to get a bargain and your company is one of dozens that are similarly contacted. If you become intoxicated with the thoughts of future riches, you could put your company in jjeopardy. This article examines how you should manage this process.
Selling the Family Business - A Single Buyer is a Prescription for Failure
Many business owners get approached by a single buyer with an unsolicited offer to buy the business. This article discusses the pitfalls of entertaining this single buyer and what to do to improve your odds of getting a fair outcome.
Sell a Software Company - Ten Mistakes That Destroy Value
Selling your software company is the most important transaction you will ever make. Mistakes in this process can greatly erode your transaction proceeds. This article discusses the most common errors that software entrepreneurs make in selling their business and how to avoid them.
Tax Consequences of Selling a Business
If you are thinking about selling your business, the first thing you should do is to consult your tax accountant to understand the tax consequences of various transaction structures and the resulting after tax proceeds from a stock sale versus an asset sale.
Selling a Business - Get a Letter of Intent Prior to Due Diligence
A common mistake made by business sellers is to agree to the buyer performing due diligence before a letter of intent is executed. Why would a business owner agree to this difficult and disruptive process without having a clear picture of his eventual financial outcome if everything checks out? Below is a sample letter of intent.
Sell a Software Company - The Valuation Dilema
One of the most challenging aspects of selling a software company is coming up with a business valuation. Sometimes the valuations provided by the market defy all logic. This article explores the key elements that drive software company valuation multiples.
Private Equity May Be Your Best Business Exit Strategy
This article discusses the dynamics of private equity investments into family owned businesses and under which circumstances they may be the best business exit strategy.
How to Increase the Selling Price of Your Company
This article discusses how large corporate buyers look at making strategic acquisitions. The better you can position your selling company in these key areas of value creation, the greater your business selling price.
Ten Reasons to Sell Your Information Technology Company
Discression is the better part of valor was appropriate in the writings of William Shakespeare. It may also be appropriate in the rapidly changing environment of the information technology entrapreneur. This article discusses reasons an owner may consider selling his company.
Healthcare Private Equity - Consider the Smart Equity Alternative
Many entrepreneurs seek private equity as a way to take their company to the next level. Consider the smart equity alternative of having a large healthcare company take an equity stake in your company. This article discusses why that is a superior alternative.
Private Equity Versus Smart Equity for the Software Company Entrepreneur
Many entrepreneurs seek private equity as a way to take their company to the next level. Consider the smart equity alternative of having a large information technology company take an equity stake in your company. This article discusses why that is a superior alternative.
Food and Beverage Industry Private Equity - Consider the Smart Equity Alternative
If you are an entrepreneur with a small food or beverage company looking to take it to the next level, this article should be of particular interest to you. Your natural inclination may be to seek venture capital or private equity to fund your growth, but that might not be the best path for you to take.
Healthcare Business Sales - Why Use an Investment Banking Firm
Sellers of healthcare businesses often try to represent themselves through the sale process. This article discusses the role of an investment banker and attempts to answer the question, are they worth the cost?
Selling Your Software Company - Ten Mistakes That Destroy Value
Selling your Software Company is the most important transaction you will ever make. For most business owners they only sell one business in their lifetimd. Mistakes in this process can greatly erode your transaction proceeds. This article discusses the ten common mistakes to avoid.
The Number One Driver of Business Valuation in a Software Company Sale
Considering selling your software or information technology company? This article discusses the most important thing you can do to increase your selling price.
Not Invented Here is Not an Option for The Large Beverage Companies
The innovation in the beverage industry is coming from a group of entrepreneurs known as the new rule makers. This article discusses an approach to form equity partnerships between these start-ups and the beverage industry giants.
Healthcare Information Technology - Business Valuation
Business valuations for healthcare information technology companies is more of an art than a science. Ultimately a competitive market bid situation is the only true method. We attempt to quantify the important valuation elements in this article.
Grow or Sell Your Information Technology Company - A Crossroads Decision
A critical decision point for an Information Technology Company entrapreneur is the one to take it to the next level. This article discusses the factors to consider in this crossroads decision.

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Dave Kauppi's Articles