14 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 ValueWalk entitled “Ready to sell a business? Make sure it’s sellable first” explores changes a business owner may need to make to their business in order to make it sellable. Some of these changes may take a significant amount of time so it is important to analyze your business well in advance of listing it for sale.
One change that may need to be made is the brand. If the owner is the brand, then a shift towards the brand of the product or the company will need to be gradually made. This also applies to social media profiles used to promote the business.
Another potential change is that of the business structure. In relation to the business structure, formation paperwork will need to be in order along with financial statements. When it comes to finances, a separation of personal and business will be critical.
The business may also need to grow in order to be worth what the owner is hoping to sell for. Strategies for scaling and growth can be developed and implemented, but this takes time.
A recent article from Smart Business Dealmakers entitled “Mark Mantovani Says Sell Your Company’s Future To Buyers” discusses how the future comes into play when selling a business.
When it comes to pitching a business for sale, it is good to focus on the vision. Buyers are looking for future profitability, so a clear vision will help a buyer understand what the business can achieve if they take ownership of it.
When it comes to deciding when to sell, it’s important to consider the lifestyle you desire and how selling your business can help you realize this lifestyle. It is near impossible to predict how the market will change over the next several years, so try not to base your decision on what you think the market will do.
A recent article from Mergers & Acquisitions entitled “What’s Next for Dealmakers After Covid? Churchill’s Randy Schwimmer Weighs In” offers insights from the founder and publisher of The Lead Left regarding deal making as we head towards 2021.
Schwimmer’s observations include:
- Financing is available for qualified buyers
- Businesses that have struggled due to the pandemic are not easy to sell
- Businesses that have remained steady or grown amidst the pandemic are seeing pre-pandemic or higher valuations
- Sellers are trying to decide when is the right time to sell given how their numbers have been affected and the uncertainty of the election in relation to capital gain taxes
- Deal processes have drastically changed with reduced travel and in-person activities, this may shift back some in 2021 but probably not to 2019 standards
- Industries that have struggled include things like retail, restaurant, travel, leisure
- Industries that have outperformed include things like software and tech