20 Nov Around the Web: A Week in Summary
A recent article from M&A Source entitled “Risk Of Recession: Should I Sell My Business Now” discusses the considerations a business owner should take when deciding whether or not to push through a recession.
With many financial professionals predicting a recession in the near future, it is expected that business owners will be wondering what to do. If you’re torn between selling your business now before the recession hits or staying on board and weathering the storm, here are some things to consider:
- It’s important to get clear with yourself about why you’re looking to sell your business. If you’re feeling burnt out or no longer share a passion for your company, it is less likely to survive an economic downturn.
- Ask yourself whether or not your business is recession proof. This is dependent upon the industry, but if you are not a recession proof luxury business, then it may be best to exit sooner rather than later.
- If your drive for the business remains intact, and you believe the company is able to survive a recession, then it may actually increase the company’s value when the temporary downturn has ended.
Determining when to sell a business, to whom, or whether to sell it at all can be a complex decision. For the best outcome, be sure to consult multiple professionals and be aware of all of your options.
A recent article from Heating Ventilating & Plumbing (HVP) magazine entitled “Selling your business? Don’t fall for attractive high valuations” explains the reasons why it’s important for business owners to avoid choosing the business broker they work with simply based on who provides the highest valuation.
After the years of hard work and dedication it takes to build a company, it is understandable why one may be wooed by a high valuation number. To an owner, the value that their company holds is often limitless. However, in the marketplace, an extremely high multiple can cause serious buyers not to take the listing seriously. Therefore it is important that when receiving a valuation, business owners make sure that the individual performing the valuation uses a wide range of assessment criteria. This will provide a fair, accurate valuation of the business and increase the chances of completing a transaction with a serious buyer that is ideal for all involved parties.