08 Jul Around the Web: A Week in Summary
The following information has been sourced by Business Brokerage Press for the benefit of the business brokerage community. The views of these articles do not necessarily represent the views of Business Brokerage Press. We hope you find this information helpful.
A recent blog post from Sunbelt entitled “6 Reasons You Should Consider Buying a Home-Based Business” discusses a recent rise in home-based businesses and the pros of buying a home-based business.
Common benefits of buying a home-based business include:
- Reduced overhead
- Greater flexibility
- Increased creativity
- Happier and more productive employees
- Ability to attract qualified talent from other geographic areas
- Tax advantages
A recent blog post from Viking Mergers & Acquisitions entitled “The Silver Tsunami Is Coming” explores what the next 10 to 15 years may look like as baby boomer business owners get ready to retire and the next generation takes over.
Baby boomers own a large percentage of the nation’s privately held companies. Not only are these owners approaching retirement, but they are also witnessing a lot of change related to COVID-19. Many of them have the bulk of their assets positioned in their business, making it critical to properly prepare for selling and retiring.
Preparation tips include:
- Assemble your deal team consisting of an accountant, financial planner, attorney and business broker
- Establish consistent accounting practices to maximize shareholder wealth
- Develop an organizational chart, job descriptions and employee handbook
- Define your vision, mission and core values
- Get contracts, leases and transferable agreements in order
A recent article from Divestopedia entitled “How Targeted Should Your Sale Process Be?” discusses how to determine the right number of buyers to approach when selling your business.
The following questions can help you find the sweet spot for your unique deal:
- Is there a small number of buyers who would reasonably have interest and have the financial wherewithal to pay a fair price for your business?
- Is yours a business where very specialized industry experience and knowledge are required in order to get comfortable with the acquisition?
- Are you confident that, among the shorter list of buyers, there will be several bidders who will make attractive offers?
- Will it be damaging to the business to share confidential information to numerous parties?
The answers to these questions can help you determine whether a narrower pool of buyers or broader pool of buyers is best for your deal.