07 Oct 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 Inc. entitled “What to Expect in Due Diligence if You Sell Your Company” discusses key elements that a buyer will look at during due diligence. If you’re not familiar with due diligence, it is kind of like a home inspection. The buyer is looking to verify information and uncover potential issues.
During due diligence a buyer will look at:
- Business financials
- Legal contracts
- Customer relationships
- Employees
- Inventory
- Reputation in the market
- Company culture
Click here to read the full article.
A recent article from Santa Fe New Mexican entitled “Selling a business remains an alternative to shutting down” discusses the option of selling for businesses who may be struggling due to the pandemic and current state of the economy.
There are buyers looking for businesses to acquire. If a business is currently struggling but prior to the pandemic had performed well for the last few years, it may be a viable target for buyers. However, if you are going to sell it is important to do it before the business is too far in the hole. If it is on its last leg and closing is just a few months away, it may be too late.
To help get the business ready for sale, a business owner can make improvements to the facility, organize their books, and enlist the help of a business broker.
Click here to read the full article.
A recent article from The Pueblo Chieftain entitled “Selling your business during the pandemic” examines the current environment for business owners looking to sell. While business transactions dropped dramatically during the onset of the pandemic in the spring, sales have begun bouncing back.
Current primary buyer types include those looking for a business that is profitable and pandemic resilient, and those looking for distressed businesses at a discounted price. Buyers will examine typical financial and operational information as well as debt related to government assistance during the pandemic.
One of the first steps a seller can take is a business valuation. This will tell them how much the business is worth and can help identify potential areas of improvement.
