Understanding Phantom Equity: How It Can Increase the Value of Your Business Before You Sell

When preparing to sell your company, one of the most powerful, yet often overlooked, tools at your disposal is phantom equity.
It can motivate key employees, improve company performance, and make your business far more attractive to potential buyers.
At Elkridge Advisors, we often meet owners who want to sell for top dollar but haven’t yet set up the right internal incentives to make that happen.
Phantom equity can be a smart and flexible way to do just that, without giving away actual ownership.
Asset Sale Explained: What Every Business Owner Needs to Know

To achieve the best outcome when selling your business, you need to understand the structures buyers and sellers use.
One of the most common approaches is the asset sale.
Many owners are unfamiliar with the differences between an asset sale and a stock sale.
This knowledge gap can affect how much money you walk away with.
It can also impact taxes, liabilities, and even the smooth transition of your business.
What Is Common Stock and How It Affects Your Business Sale

When planning to sell a business, it’s important to understand the basics of your company’s structure.
One of the most important parts of that structure is common stock.
Many business owners hear the term but aren’t sure what it means, or how it impacts the sale of their company.
At Elkridge Advisors, we work closely with sellers to maximize their exit value.
A clear understanding of common stock can help you prepare for a smoother, more profitable sale.
Goodwill in Business: Why It Matters When You’re Selling a Business

When you’re preparing for a sale, numbers like revenue, profit, and assets matter a lot.
But there’s another factor that often makes a huge difference: goodwill in business.
Many owners ask us: what is goodwill in business, and why does it impact valuation?
The truth is, buyers don’t just purchase your buildings, machines, or bank accounts.