21 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 BizBuySell entitled “Lower Business Inventory Drives Premium Prices for Q1 Acquisitions” reveals findings from BizBuySell’s Insight Report for 2021 Quarter 1. The report details business for sale transactions and sentiment of business owners, buyers, and brokers.
Some of the key findings include:
- Median sale prices increased 30% in Q1 2021 compared to Q1 2020
- Transactions declined 12% in Q1 2021 compared to Q1 2020
- Pandemic resilient businesses were most popular among buyers
- Florida reported the highest number of transactions in Q1 2021
- 42% of buyers expect business prices to go up in 2021
- 1 out of 5 brokers believe concerns over rising taxes will be the top factor motivating owners to sell in 2021
A recent article from El Defensor Chieftain entitled “Mistakes many business owners make when selling their business” highlights common errors business owners make when creating their exit strategies. The reality is most will have to exit at some point, yet most don’t have a firm grasp on how to plan for this.
Five common exit planning mistakes include:
- Not planning at all
- Making too many assumptions (i.e. it will be easy to sell fast)
- Being too busy to get organized
- Omitting your family from planning
- Not leaving enough time for the process
A recent article from Influencive entitled “Knowing When to Sell Your Business: Determining Company Value” discusses the challenges of letting go, knowing when the time is right, and seizing the opportunity.
A common challenge when it comes to letting go is the desire to always reach one more goal within the business. This desire to achieve more and to perfect the business can kick the can down the road too far and risk the salability of the business if goals aren’t met and growth stagnates.
It’s important to know what the business is worth and when it’s worth selling. When it comes time to sell, negotiate wisely, enlist the help of experienced transaction professionals, and keep your post-sale goals as a top priority so that the sale works for you.