24 Jun Around the Web: A Week in Summary
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A recent article from Talk Business & Politics entitled “M&A broker says business owners are confident in ability to recover from COVID-19” explores how business owners feel about recovering from COVID-19 related economic struggles and how this affects their future plans to sell.
Barbara Taylor of Allan Taylor & Co. polled business owners about these topics. Her findings were that most businesses have experienced a negative impact from the economic shut down, however they are generally confident they will be able to recover over time.
Taylor also found that business owners are still thinking about selling, with some moving forward and some hitting pause for now.
A recent article from Birmingham Business Journal entitled “2020 Insights into Mergers and Acquisitions” offers insights from two M&A professionals regarding COVID-19 and mergers & acquisitions.
Questions answered include:
- How has COVID-19 affected the M&A pipeline? Is it causing business owners to delay plans to sell?
- What about valuations? How is COVID-19 affecting them?
- In this type of environment, what questions should sellers ask themselves or their advisers before pursuing a sell? What about buyers?
- Are there any tax considerations or COVID-19 relief measures that should be considered when contemplating an M&A deal?
- On the buying side, what should I be looking for when considering buying a company? Are there any particular areas that could be red flags?
- Considering the economic turbulence and potential for a lingering recession, how should buyers and sellers approach M&A transactions?
- What types of firms or companies can assist my company through the M&A process? What types of questions should I ask when choosing one?
- How important is the culture of the other party when considering an M&A deal?
- Are there any special M&A considerations for family-owned businesses?
- How is the aging of the baby boomers affecting the M&A market?
A recent article from Business 2 Community entitled “5 Facts You Must Know to Successfully Sell Your Business” gives business owners five helpful tips to foster an easier and more successful business sale.
The five tips offered include:
- Failing to prepare, is preparing to fail – Thorough preparation is critical when it comes to selling a business.
- Confidentiality is key – Utilize NDAs and a timed release of sensitive information to help protect the business.
- Detailed Heads of Terms are vital in protecting value – As a seller, utilize the Heads of Terms to agree to as many key points as possible while you still have power in the deal process.
- Focus on quality, not quantity of buyers – Concentrate on strategic buyers who are a good fit for your business so that you can maximize value.
- Don’t do it alone – Assemble a deal team to help with the heavy lifting and ensure a successful transaction.