14 Jun Around the Web: A Week in Summary
A recent article from Divestopedia entitled “Who is the Right Buyer for Your Business?” illustrates the thinking that should go into determining which type of buyer will fit best in the sale of a business. A single business transaction can present several different types of potential buyers, each having their own goals and motivations for buying a business. Understanding these types of buyers can help an owner make the right choice for their own personal goals as well as for the good of the business.
Some buyer types include:
- International Entity
- Financial or Private Equity
While sometimes surprises do happen during the sale process, it is invaluable for a seller to have some knowledge and understanding of the types of buyers they will encounter during the sale process.
The recent Divestopedia article “10 Brand Architecture Strategies After M&A” explains the importance of a developing a proper post-merger branding strategy. Not only is this necessary to identify the new entity, a proper branding strategy can help with the new company’s integration and acceptance into the market. While there are several different ways this can be done, each set of circumstances is different and there is no formula for what the right brand architecture will be for every business. The strategies below represent some of the available options:
- No Change
- Stronger Horse
- New Brand
These strategies, along with some variations of them, will all pose their own strengths and weaknesses in different scenarios. Choosing the right one will involve a lot of thought and some big decisions, a process that is not to be taken lightly. Though the time and risk involved in the re-branding process can be daunting, the potential for success can make it all worthwhile.
A recent article posted in The Herald-Palladium (Michigan) entitled “What You Need to Know Before Buying a Business” outlines some of the most important questions to ask and factors to consider when buying a business. Entrepreneurship is both an exciting and rewarding process, but if a buyer is not careful during the buying process, they can easily and quickly get in much too deep. Some important questions to ask include, but are not limited to:
- Why is the current owner selling the business?
- What sort of reputation does the business have?
- Are you getting everything you need to seamlessly take over running the business?
Getting all of the pertinent details, knowing and understanding all of the numbers, and understanding the sale process are just a few of the many factors and steps involved in buying a business. Buying a business is exciting and fun, but being prepared is paramount.