23 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 blog post from Viking Mergers & Acquisitions entitled “How Long Does It Take to Sell a Business?” discusses a common question that business brokers often hear – how long will it take to sell my business? While a general answer is 6 to 9 months, there are several key variables that can impact this timeline.
The length of the sales process can be heavily influenced by the following variables:
- Selling the business yourself vs. hiring a business broker
- The marketing program used to advertise your business for sale
- The industry your business is in
- The location of your business
- The due diligence and closing process
A recent blog post from Transworld Business Advisors entitled “Working with Lawyers to Get Your Deal Closed” explores the relationship between business broker and attorney. While this relationship is sometimes contentious or adversarial, there are several things a business broker can do to create a productive and positive relationship with attorneys who are involved in their deals.
A business broker should be an effective communicator with the attorney so that deal information, issues that need to be addressed, etc. flow efficiently in both directions. Communication is essential.
A business broker should also be a facilitator. This means providing the attorney what they need, resolving issues, and supporting the closing process.
A recent blog post from Viking Mergers & Acquisitions entitled “4 Common Valuation Methods for a Company” discusses methods that are used to determine how much a business is worth. When determining the value of a business, it is helpful to use multiple valuation methods so that an accurate figure is reached.
Four common valuation methods include:
- Earnings-Based – determining value based on future profitability
- Asset-Based – determining value based on total net assets minus total liabilities
- Market-Based – determining value by comparing to recent deals involving similar businesses
- Income-Based – determining value based on projected cash flow with risk-based adjustments