03 Feb 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 Exit Oasis entitled “Planning to Sell It Changes Everything” discusses how a business owner’s exit plan can impact the decisions they make while operating the business. Running a business to keep and running a business to sell have different needs, so the owner’s decisions should reflect these needs.
For example, for a business that the owner is planning to keep, it may make sense to make an investment that will lead to future savings. But for a business that the owner is planning to sell soon, this investment can result in a short-term decrease in profit while the value of the future savings could be open to interpretation, adding up to a potentially lower sale price.
A recent article from Northern Nevada Business Weekly entitled “Do a self-assessment before buying a business” explores the importance of reflection when considering the purchase of a business. While most potential buyers understand the importance of assessing the business, they may not realize the importance of assessing themselves.
A self-assessment helps ensure that the business is a good fit for you and that you are a good fit for the business. Consider factors such as:
- Financial situation
- Ability to take risks
- Ability to assume responsibility
A recent article from Forbes entitled “How To Have No Regrets When Selling Your Business” offers steps a business owner can take when selling their business to help prevent seller’s remorse. This is a big decision for business owners that they will have to live with for years, so going into it with the right approach can help it be the right decision.
Tips for business owners include:
- Have clear goals and objectives
- Choose transaction professionals that align with your goals and objectives
- Listen to the valuation experts and take steps to improve the valuation if necessary
- Pay attention to all of the deal terms, financial and legal
- Understand the process