15 Nov Around the Web: A Week in Summary
A recent article posted on Divestopedia.com entitled “Know Your Buyer” outlines the importance of knowing and understanding potential buyers in the market when putting a business up for sale. This is important because knowing the different types of potential buyers will give an owner insight into how to approach and appeal to the types of buyers they want to take over their company.
Different types of buyers will likely have different motivations and therefore produce different outcomes for a business transaction, so knowing and understanding them will help to give an owner better control over the future of their company and ideally help make the right decision on who to sell to.
A recent article from The Axial Forum entitled “Maximizing Your Business Value Before a Sale” gives insight into how to get the most out of a business sale. According to the article, the key to a successful sale comes in driving business value before selling the business. This can be done in a wide variety of areas of the business, from aiming to increase sales growth to product innovation, improvement of backend systems, and more.
Many of the methods and value-driving factors can take many months, if not several years, to implement and improve, so proper thought and planning is necessary to get the most out of the process. In the ideal situation, maximizing business value ahead of and in preparation for a sale will make a business much more attractive to a potential buyer.
A recent article posted on BizJournals.com entitled “Report: Business-for-sale marketplace on track to hit all-time high in 2017” analyzes recent marketplace data from BizBuySell regarding the state of the 2017 transaction marketplace. Four important points are highlighted below:
- Available businesses are financially healthy
- Time on the market is down
- Asking prices are up
- The services sector is strong (but retail is struggling)
In the end, the overall market is up and growth seems to be strong and will likely continue into the first quarter of 2018, pending any hiccups from Washington or Wall Street.