29 Aug Around the Web: A Week in Summary
A recent blog post from Exit Promise entitled “How to Successfully Acquire a Business in a Seller’s Market” outlines the five most important things a buyer can do to increase their chances of making it to closing. These five things are:
- Respond quickly to an NDA
- Disclose your approximate financial situation candidly
- Show a pre-approval from an SBA banker or broker
- Present a resume that shows you’re serious about buying a business and a good fit for running it.
- As a bonus, it’s always good to write a letter to the seller about what your intentions are for the business and why it’s important to you.
Taking these five steps when inquiring about a business shows the current owner and their broker that you are serious about buying the business and are a great fit for ensuring its continuing success.
A recent article from Exit Oasis entitled “3 Reasons You’re Not Building A Sale-Ready Business” walks through the three most common reasons a business owner avoids doing the work to make their business sellable, and why you should do it anyways.
These reasons are:
- You think you’ll never sell your business. Seeing as we’re not immortal and things can change despite our plans, it’s important to have a sale-ready business to avoid an unplanned involuntary exit.
- Putting things off is human nature, especially things that don’t have an immediate effect on our circumstances. Still, beginning the process now can help improve the value of the business as well as help to avoid a stressful urgent situation down the road when it is time to sell.
- Being unsure of where to start. Instead of avoiding building your business to be sale-ready because you’re not sure how, start with one simple step: getting a business valuation. Having this done can not only tell you where your business currently lies value-wise, it can also highlight what you can do next to increase the value and salability.
It may seem like a step that is not high on your urgency list, but starting now can make the process smoother and set you up for better leverage and decision making down the road.
A recent article from Mergers and Acquisitions entitled “Giving Digital Diligence It’s Due” discusses the ways in which the emergence of the digital economy is affecting the way businesses are being evaluated pre-sale. It used to be that due diligence consisted of evaluating assets, liabilities and overall fiscal health of a company. However, with the ever increasing role of technology in our society, and in the way we run businesses, things are changing. In addition to these traditional examination points, it is becoming increasingly more mainstream to consider and examine both the security of a company’s tech as well as any potential for post-sale growth opportunities it presents when determining the value and salability of the business.