The greater a company’s free cash flows, the better able it is to compete, invest, grow, and attract potential investors. This report from the National Center for the Middle Market identifies working capital management perceptions, practices, and challenges and opportunities among middle market firms, including the fastest-growing and best performing businesses.
Whether you’re considering a sale of your business now or planning for a future transaction, understanding the mindset of different types of buyers is critical to your preparation and decision-making processes. By understanding the motivations and goals of each type of buyer, you can better prioritize which buyers fit your situation and focus on the right relationships.
Raising equity for the first time can be an extremely difficult process for any business owner. One of the first and biggest decisions that must be made in this process is whether to sell a minority or a majority stake in the company. Understanding the implications, and pros and cons, of each route can help you make the right decision for a long-term business partner and for the future of the business. Here’s a breakdown of some the advantages and disadvantages of minority and majority partnerships that illustrates when each type of investment is best.