19 Feb Around the Web: A Week in Summary
A recent article from Atlanta Small Business Network entitled “The Confidential Marketing Process to Sell a Business and the Role of a Business Broker” discusses the difficulties that come with trying to market and sell a business and how a business broker can help ease some of these struggles.
It can be disastrous if employees, customers, competitors, or other third parties find out a business is for sale. It is important to develop a successful confidential marketing plan that is tailored to your unique business.
Your plan and your documents should highlight what is unique about your business without revealing too much. After identifying your potential buyer profile, you can determine a strategy to market to these potential buyers.
The most widely used form of advertising for businesses for sale are business listing websites. These websites allow brokers and sellers to provide a comprehensive profile of the business without revealing confidential information. This is where a business broker’s skills and knowledge come into play.
An experienced business broker knows how to write a listing ad and blind profile that will best describe your business with all the key information that buyers will look for. They know what appeals to buyers and can help your business stand out to impress.
A recent article from Forbes entitled “Thinking About Hiring A Business Broker? Ask These Eight Questions First” provides insight into the types of questions you should be asking when looking for a business broker. This helps ensure you’re finding the right person to help you sell your business.
It is recommended to reach out to several business brokers and ask these eight questions to find your best fit:
- Are you a member of the International Business Broker Association (IBBA), and do you hold the certified business intermediary (CBI) designation?
- How many deals, on average, do you close each year?
- What certifications or designations do you hold regarding business valuations?
- Do you work full time as a business broker, or do you do residential/commercial real estate as well?
- How long have you been a business broker, and have you ever sold your own business?
- Check out your business brokers’ online reviews.
- How long do you expect it will take to find a buyer and close the transaction?
- How much can you sell my business for, and what is the likely deal structure?
A recent blog post from The Value Focus entitled “Seven Factors That Will Increase The Value of Your Business” discusses how several elements of a business can impact how much the business is worth. Knowing how these factors impact the value of a business can help a business owner work towards building greater value in their company.
The seven factors highlighted in the article include:
- Poor Quality Financials – how well-prepared and accurate are the financial statements
- Up/Down Sales History – how reliable are the revenue streams
- Business Growth Prospects – what paths to growth exist
- Sustainable Competitive Advantages – what do you have that your competitors do not
- Unpredictable and/or Uncontrollable Profit Margins – how stable are the earnings
- Management Depth – who is running the show
- A Diverse Product and Service Mix – is there a balance of variety and focus