04 Mar Around the Web: A Week in Summary
A recent blog post from Transworld Business Advisors entitled “Pre-Sale Checklist for Selling Your Business” provides a comprehensive list of things you should have prepared before selling your business.
The checklist includes several documents such financials, leases, and employee lists. These documents give insight into many different aspects of your business. Having these documents will help you prepare to answer questions a buyer might ask and make your business more attractive to potential buyers.
Not only will this list help you prepare for discussions with buyers, it also helps you identify strengths and weaknesses in your business. This can help identify areas to make improvements to your business in advance of the sale to make it more valuable and easier to sell.
A recent blog post from BusinessBroker.net entitled “Business Assets” discusses the role of assets when considering the criteria for purchasing a business.
In one scenario, if you are buying a business that does not generate a profit then you are essentially buying the assets. Assets can make it easier to obtain financing. These assets also come with possible tax implications and future replacement costs.
In another scenario, if you are buying a profitable business then you are essentially buying the cash flow, and assets may be less of a factor. The key is to see how the owner made the business profitable.
A recent article from Northern Nevada Business Weekly entitled “Now might be the time to sell your business” details signs that it may be time for a business owner to consider selling and external factors that make it a good time to explore a sale.
Signs that an owner may want to consider selling include:
- Decision making that once was easy becomes a major event
- Difficulty prioritizing
- Ineffective problem solving
- No longer enjoying the business
- Dreading the workday
Current external factors that make this a good time to explore a sale include:
- Strength of the economy
- Low inventory of attractive businesses for sale
- High number of buyers in the market