27 Aug 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 article from Axial entitled “Preserving Value After the Deal” explores how a company can foster long term success after acquiring another company. This acquisition was made for a specific reason, so it is important to keep this reason top of mind in order to realize the intended outcome.
Buyers can take the following 3 steps to help increase their chances of success after purchase:
- Create and implement a comprehensive action plan to guide the integration process
- Effectively communicate with all employees of the acquired company regarding how they fit into the plan and why you value them
- Put a project manager with M&A experience in place to oversee the integration of the two companies
A recent article from CEOWORLD Magazine entitled “Buying Or Selling A Business? Why The Pandemic May Be The Right Time” discusses how the COVID-19 pandemic has created opportunities for sellers and buyers. Interest rates are low which gives buyers the chance for a more financially favorable deal and which creates motivated buyers for sellers.
Tips for buyers include:
- Be ready to look at lots of opportunities before finding the right one
- Gather as much information as you can about any businesses for sale that you are considering
- Look into seller financing
- Be thorough with due diligence
Tips for sellers include:
- Thoroughly prepare for the sale
- Get specific with what you are selling
- Have a business valuation done so you know what the business is worth
A recent article from Divestopedia entitled “Turning Over a New Leaf: Life After Selling Your Business” discusses the importance of business owners thinking about what life will look like after they sell their business well before they actually sell.
The business owner should have honest conversations with their closest confidants to make sure they aren’t surprised about post-sale life and so they start to identify a new purpose. Will the owner start a new business, invest in an existing business, continue to work for the business, or retire?
It is also important to consider how the owner will use their new found time and capital, and how that ties to their new purpose, their post-sale goals, and their financial future. Creating a wealth management plan is key.