06 Nov Around the Web: A Week in Summary
A recent article from Allan Taylor Mergers & Acquisitions entitled “3 Principles of Timing the Sale of Your Business” describes the conditions under which a business owner would be best positioned to sell their company.
Business brokers are in the business of selling businesses. However, their efforts can only take the sale so far without the cooperation of the business owner. In order to receive top dollar for a company, there are many things that a seller needs to do to first prepare their business for a transition. One of the important factors that contribute to a successful sale is timing. Use these three guide points to determine the best time to sell your business:
- Sell when your business is in an upswing. It is a losing battle trying to explain away poor financial records or a bad fiscal year. Get the best value out of your sale by selling during a consistent time of financial prosperity for the business.
- Sell when the market is good. There is no substitute for a healthy strong market, and given that we are currently in the midst of one, there is also no telling when it will end or when the next one will arise. Strike while the iron is hot.
- Sell when you’re ready to let go, because if your head isn’t in the game then the results will be subpar because your efforts will also be subpar. Selling a business is a process and requires a lot of your time and energy.
A recent article from Wilmington Biz entitled “How Long Does Planning for Your Business’ Future Take?” explains the different factors that impact the length of time it takes to exit a business.
It is natural for a business owner to wonder how long it will take to sell their company. The general answer to this question is: it depends on how prepared both you and the business are for the exit. When calculating the amount of time the process will take there are two major steps to consider:
- Shaping the Exit Plan: This process is faster when the owner is clear on their goals for the company’s future as well as their own and slower when they are clouded with uncertainty. Knowing which exit path you’d like to take and why is the key to this step in the process.
- Implementing the Exit Plan: This step depends entirely on the current state of the business in comparison to the goals set forth in the plan. Building value in the business, cleaning up finances, and preparing a future owner for the position are all factors than can prolong this part of the process.
Ultimately, the amount of time it takes to craft and implement an exit plan is different for each business. What does remain constant is that it’s never too soon to start the process or to begin considering how to prepare for it now in order to save time later.
A recent article from Smart Business Network entitled “How to get your business, and yourself, ready for a sale” briefly explains the steps a business owner needs to take in order to prepare for the sale of their business.
Eventually, every owner exits their business. In light of this reality, it is prudent to begin planning for the transition as soon as possible. While planning early on can help you to assure that you achieve the goals that you have for yourself and your company, waiting too long can create a negative impact on the outcome of the sale. Things you can do to prepare for the transition are:
- Have a third party evaluation of the business performed
- Assess and prepare the management team
- Hire an advisory team consisting of professionals such as a lawyer, business broker, accountant and investment banker
- Take time to evaluate how you’re feeling about the transition and prepare for life after the sale
- Get a clear image of what needs you have from the sale of your business