As a business broker I am often asked the question, “Do I need a business broker to sell my business?”

The short answer is yes, but not for the reasons you may think!

The primary function of a business broker is to find a buyer for your business, help you determine the right price for the business, and to close the transaction. Business brokers often provide additional services such as advising on whether the sale should be structured as an asset or stock sale, provide assistance with financing, and to supervise the due diligence process. The business owner should make sure the broker is highly qualified to undertake the transaction because there are no established qualifications for brokers, and many brokers operate on a part-time basis.

But the real reason a business owner should hire a broker is because selling a business is very time consuming, and someone needs to guide the sale process while the business owner keeps the business performance strong. It has been my experience that deciding to sell a business is a very personal decision, and one of the toughest decisions an owner makes. But once decided, owners tend to let down mentally on the business because it is being sold. WRONG! The owner must keep the business performance strong during the sale process, or risk losing any potential sale. I have experienced transactions fall apart because the business is performing poorly during the sale process. And this is precisely the time when the business needs to be at its best!

So, if you have decided to sell your business, seek a qualified broker and trust the broker to guide the sale process while you keep the business performing strongly. This approach will help to maximize the sale process and the proceeds!


Bob Bowman
926 Goal Post Drive Dayton, OH 454548 P: 937-885-5548 F: 937-885-4254 C: 937-620-0859
email: rbowman18@woh.rr.com www.bowmancapitaladvisors.com

Say it like it is!

As a financial consultant to business owners, I am often asked, “how does my business compare to others?” Whenever I hear this question I almost always direct the business owner to the only metric that is truly comparable from business to business.

EBITDA Margin is the metric, and it expresses the percent of Earnings Before Interest, Taxes, Depreciation and Amortization to total revenues. EBITDA is a measure of new cash flow generated by the business in a given period of time, usually one year or sometimes trailing twelve months. EBITDA Margin is the “percent” of total revenues represented by EBITDA. Stated another way, EBITDA Margin is the percent of each revenue dollar that ends up as new cash flow generated for the business.

This metric actually measures the effectiveness of your business model, and like most financial metrics, should increase over time if your business is operating more efficiently from year to year.

EBITDA margin for two distinct companies can actually be compared to see which business model is operating more efficiently. The greater the EBITDA margin, the more efficiently the business is creating new cash flow. And… the greater the valuation that will be assigned to the company.

And when the EDITDA margin is compared for the same business from year to year, it becomes readily apparent if the business is operating more efficiently from year to year.

So, if you want to know how your business compares to others, check out your EBITDA margin. Widely published for publicly traded companies, sought after by investors, and a key value driver for your business, EBITDA margin tells it all!


Bob Bowman
926 Goal Post Drive Dayton, OH 454548 P: 937-885-5548 F: 937-885-4254 C: 937-620-0859
email: rbowman18@woh.rr.com www.bowmancapitaladvisors.com