10 Sep 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 Philadelphia Business Journal entitled “5 drivers that can increase the value of your business” discusses what creates value in a business and how a business owner can grow this value. This is critical for owners who are counting on a profitable future sale.
Five types of value drivers to consider include:
- Growth drivers – these positively impact value and examples include establishing recurring revenue and developing intellectual property.
- Intangible drivers – these are the non-physical assets and examples include brand recognition and customer experience.
- Efficiency drivers – improved processes can result in lower prices and increased market share.
- Structural drivers – a knowledgeable, skilled staff and a strong infrastructure help the business focus on growth.
- Financial drivers – improving key metrics such as SDE and EBITDA leads to a higher value.
A recent article from Axial entitled “Virtual Deal Making and the Rise of Contactless M&A” discusses a firm’s experience with a 100% virtual transaction. This firm never met with the seller or buyer, and the seller and buyer never met with each other. The deal was completed from engagement to close in just over four months.
The factors that helped make this virtual transaction successful include:
- Have a single point of contact on each side for virtual calls
- Use M&A platforms and technology efficiently
- Reinvest saved time from travel into getting more work done
A recent blog post from Sunbelt Business Brokers entitled “Five Questions to Consider Before You Sell a Car Wash” explores considerations for car wash owners who may be contemplating selling their business. Before listing, an owner might want to ask themselves the following key questions:
- How will I exit the business?
- What is the value of my car wash?
- What machinery and equipment will I sell with the business?
- How does my car wash compare with nearby competitors?
- How will I advertise my listing?