03 Dec 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 Entrepreneur entitled “4 Things to Understand When Buying a Business” discusses key considerations for those looking to purchase a business. Buying a business is a huge decision, so it is important to approach it with care.
When getting ready to buy a business, consider the following:
- Choose a business type that you are passionate about. The more passion you have for the business, the better chance you have to succeed.
- Thoroughly research businesses for sale based on your parameters on location and price, and look into the business’s reputation.
- Find out why the current owner wants to sell the business and think about what that means about the business.
- Create a business plan that details what you will do with the business to make it a success.
Click here to read the full article.
A recent blog post from Business Valuation Resources entitled “Valuing Full-Service Restaurants: Six Key Considerations in Today’s Market” discusses pandemic-related issues to consider when determining the value of a restaurant. The COVID-19 pandemic has had a dramatic impact on the restaurant industry, so it is important to approach the valuation with awareness.
Issues to consider include:
- When the pandemic was considered known, which impacts how it affects the valuation.
- There is an increased importance of the industry and economic analysis.
- There are different types of valuations which can be impacted by the pandemic differently.
- The cost of capital has changed.
- Some pre-pandemic valuations are being revised.
- It is helpful to know the ins and outs of the virus for business survival.
Click here to read the full article.
A recent blog post from Exit Strategies Group entitled “M&A Advisor Tip: How you know when it is time to sell” explores how a business owner can identify when it’s time to sell their business.
It is very important to prepare your business for sale long before it is actually time to sell. So once you have taken the proper steps and feel the business is well-prepared, how do you determine if it is actually time to sell?
Some indictors include:
- Revenue has leveled and you can’t figure out how to increase it
- The industry is consolidating
- The probable selling price is enough for what you need to exit and move on to the next financial chapter in your life, and external factors could decrease the value of the business
- You want to diversify your assets
- You are losing passion for the business
- You’d like to spend your time and money doing something else
