16 Aug Around the Web: A Week in Summary
A recent article posted on The Sunbelt Network blog entitled “Is an SBA Loan Best for Buying a Business?” examines the idea of using a loan from the Small Business Administration (SBA) to buy a business. With several categories of loans and different qualifications needed for each, there are certainly a wide range of available options for business transactions.
SBA loans are backed by the SBA, which makes them great investment tools for first-time buyers and owners because they are more likely to get approved, whereas the buyer may not be approved for other types of financing. Interest rates are also very competitive and approval can even take just a week, so for those that have the proper paperwork together, a good credit score, and good character, an SBA loan can be a great option.
A recent Axial Forum article entitled “3 Reasons an M&A Advisor is Worth the Cost” presents impressive statistics regarding the utilization of M&A advisors in the sale process. 100% of owners that used an advisor when selling their business stated that the advisor had a positive impact on the sale, with 84% of these sellers achieving a sale price equal to or higher than the advisor’s initial estimate.
While these types of statistics are expected among industry insiders, many business owners will still hesitate to hire an advisor for the sale of their businesses. As the article outlines, advisors can help to identify weak links in a business’ management team, find quick ways to increase cash flow, and whip financials into shape, among many other things.
A recent article posted on Business2Community.com entitled “The 4 Point Guide to Selling Your Business” explores four important steps to consider when selling a business. With so many factors to consider, the following are some of the most important:
- Setting the right valuation
- Giving the buyer a reason to buy
- Finding the right platform to sell
- Crafting a post-exit strategy