23 Dec Around the Web: A Week in Summary
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A recent article from Axial entitled “Preparing for a Transaction — Virtual Business Owner Roundtable” offers insights and highlights from a recent roundtable discussion between transaction-ready business owners, investors and M&A advisors. The discussion focused on common questions and concerns that business owners have in regards to M&A and raising capital.
Key topics covered during the roundtable discussion include:
- The timeline for an owner to prepare to sell or raise capital
- The importance of accounting and thorough financials
- The pros and cons of professional management
- Using an investment banker and associated fees
A recent article from CPA Practice Advisor entitled “5 Considerations Before Selling Your Brick and Mortar Business” explores key questions business owners should answer before they put their business up for sale.
Members of the American Institute of CPA’s Business Valuation Committee recommend considering the following:
- Is there a market for your business?
- Are your books in order?
- How attractive is your business?
- Is the timing right?
- Have you enhanced the business?
A recent article from TheStreet entitled “Can You Retire During a Pandemic?” discusses the feasibility of retirement for business owners in light of the COVID-19 pandemic and related economic conditions.
It’s too early to know the full ramifications of the pandemic, however there are positive signs as banks are still lending and credit is still available. For business owners who can’t wait another ten years to retire, careful planning can help position them for a successful sale in the near future.
Considerations for business owners hoping to sell soon include:
- How long it will take your business to recover from the pandemic
- Determine what your business is worth through a business valuation
- Planning your exit now will set you up for success when opportunity knocks
- Key an eye out for wildcards such as changes in tax rates and the effect of remote working on commercial property rentals