08 Apr 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 The Business Journals entitled “The 6 ways to exit your business” discusses options for business owners wishing to move on from their business. Business owners exit for many different reasons such as retirement, other business interests, or family reasons. A successful exit starts with a proper exit plan.
When it’s time to exit, there are several ways to do it. Evaluating which route is best for you is part of the exit planning process. Options include:
- Selling to a private equity firm
- Passing the business on to a family member
- Selling to an outside buyer
- Management buyout
- Employee stock ownership plan
A recent article from The National Law Review entitled “To Sell Or Not To Sell…Your Company: Five Things To Consider” explores what a business owner contemplating a sale should know and assess. With proper planning, a business owner can be ready when the time is right to sell so that they increase their chances of a successful outcome.
Five considerations for business owners prior to selling include:
- Are you maximizing your estate planning options?
- How will family dynamics impact the business transition?
- What does the business need to continue to thrive?
- What are you going to do after the sale?
- How will you manage your money?
A recent article from Divestopedia entitled “Building Enterprise Value With Strategic Planning” discusses the importance of increasing the value of your business before you sell it and how to go about doing so. A higher enterprise value typically results in a higher sale price, so it is advantageous to start implementing plans to increase this value well in advance of when you intend to sell.
Areas to focus on may include solidifying the management team, getting financial statements in shape, establishing competitive advantages, defining internal processes, creating revenue certainty, and proper strategic planning.
A sound strategic plan is customized to your business, represents all key stakeholders, analyzes internal and external factors, incorporates unbiased perspectives, and is actionable.