In today’s interview, we speak with Michael Bankus, Principal at Goriano Experts & Advisors, a business valuation consulting firm. Mr. Bankus knows that when it comes to buying or selling a business, a strategic plan must be created and executed. According to Mr. Bankus, business appraisal and valuation should be at the top of every business owner’s list. Not only does he discuss what is needed to prepare a business for sale, Mr. Bankus also breaks down the anatomy of buy-sell agreements, minority interest appraisals and exit plans.
Key Points from our Conversation
- Just like consumers will spend more with a credit card, business buyers may pay more when seller or bank financing is involved.
- There should be an exit plan from day 1, but the tactical and implementation of it normally takes place a few years before the sale.
- The expert can also guide the buyer in their negotiations, initial and counter offers and proposed deal structure.
- My experience has been that “another set of eyes” usually reveals something (hopefully positive) that may have been missed.