07 Jun Around the Web: A Week in Summary
A recently published article from Business.com entitled “Why Every Business Owner Needs an Exit Strategy” outlines the importance of having an exit strategy for business owners, no matter what point they are at in running their business. The author uses an analogy involving building construction: if multiple exit options are required for each floor of a multi-story commercial building in preparation for disaster, why not plan for the same in your business?
As can be expected with most elements of a business, exit strategies will vary depending on the business and will be tailored to each specific business’s circumstances. The basics, however, include the following:
- Business Goals
- Timeframe
- Intentions for the Business
- What’s Next for the Business Owner
While some may argue against incorporating an exit strategy into a business’ initial business plan, some benefits for exit planning early on include enhanced business value and the ability to use the strategy as a blueprint for success or a flexible template for sale preparation. Whether or not an owner decides to pursue exit planning now or further down the road, these are all factors to consider.
Click here to read the full article.
A recent Divestopedia article entitled “Growing Your Business in Preparation for a Sale” explains some steps to take in preparation for selling a business, mainly in the sense of increasing value to meet the financial goals of the owner. The steps are as follows:
- Evaluate the Timing
- Find Help
- Identify Value Drivers
Whether an owner is trying to grow in the very short term to prepare for a quick sale or if they have a few years to plan and grow, utilizing advisors and consultants throughout the sale preparation process will certainly help to get affairs in order. These professionals can also help to identify value drivers that matter the most to potential buyers. Knowing what buyers want to see and what they look for is key to preparing for a business sale.
Click here to read the full article.
A recent article posted on the Axial Forum entitled “How to Make a Great First Impression When Meeting With Investors” takes insight from M&A advisors regarding things to consider when meeting with investors or buyers during the business sale process. Although it can be an intimidating and nerve-wracking process, it can be made simpler with proper preparation.
One pair of advisors suggests that conversation be balanced, while making sure to highlight the important marketable attributes of a company. They mention that there are so many different reasons that a buyer or investor could lose interest, but emphasizing the positives and providing ways to mitigate risks or potential pain points can go a long way in encouraging and retaining potential buyers.
Another advisor stresses that owners should be prepared for the meeting. Whether that means knowing their numbers or rehearsing for the meeting, being prepared is of huge importance to ensure nobody is caught off-guard by anything during the meeting.
Follow the link below to read the full article and learn more great advice.
