30 Oct Around the Web: A Week in Summary
A recent article from Southeast Missourian entitled “8 Ways to Make Buying a Business Less Scary” explains considerations to be made by both sellers and buyers in order to reduce the potential worry that may prevent a sale from being finalized.
Things for sellers to consider:
- Partnering with a business broker to utilize their expertise for a smoother sales process.
- Low interest rates are appealing to buyers.
- Currently there is a positive economic environment which is very encouraging to buyers. This can work in your favor.
Things for buyers to consider:
- Look for a consistent increase in earnings in a business. If their financial reports don’t show this, dig deeper to understand why.
- A business with a strong management team already in place translates to a support system for you once you take over.
- Finding a business to buy that has recurring revenue streams and long term contracts can help to stabilize your income through a transition.
- Be sure that you can understand the financial statements clearly before agreeing to anything to avoid unpleasant surprises.
Transitioning business ownership doesn’t have to be a scary process if you know what to look for and have proper support in place. Working with a business broker is a great way to accomplish both of these.
A recent article from The Tokenist entitled “How to Use the Best Tax Structure When Selling Your Business” explains how to understand and determine the most beneficial way to structure your business sale with regards to the taxes you will have to pay on the sale.
Due to a simple lack of knowledge, some owners will end up paying up to fifty percent in taxes on the sale profits of their business. How taxes are charged depends on a number of factors including the way your business is structured, how the proceeds from your sale are labeled and what type of sale you conduct. Ultimately, the details of the sale need to be agreed upon by both the buyer and seller. This is because as a general rule what benefits one party will typically hurt the bottom line of the other.
For these reasons, it’s incredibly important to be well-educated and have a good understanding of the way taxes impact your business sale.
A recent article from Inc. entitled “How to Create an Effective Business for Sale Ad and Ensure It Gets the Best Results” details the six strategies a broker or seller should use to produce a winning business for sale ad.
Considering all of the components of a business sale, it is easy to overlook the importance of creating the for sale ad and to push it to the bottom of your to-do list. However, with an increasing level of activity in the market, it is very important for sellers to thing strategically. Using these six tips will help to attract stronger offers and serious buyers while allowing for maximum exposure in a busy marketplace:
- Provide quality photos to make your business stand out.
- Be descriptive, and highlight the business’s unique features.
- Make a creative headline to grab the buyer’s attention.
- Include key financials in your ad to avoid losing potential buyers.
- Proofread your work.