Around the Web: A Week in Summary

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 Business Observer entitled “Due Diligence and Successfully Selling Your Business” discusses the importance of due diligence when it comes to selling a business. Preparation is key to a successful sale, and seller due diligence is a big part of this preparation.

Buyer due diligence, the process in which the buyer reviews all company information in detail to ensure accuracy, is more commonly talked about. But seller due diligence is also very important. With seller due diligence, the owner takes a close look at things like financial records, contracts, customer relationships, inventory and reputation. This allows you to identify strengths which can serve as selling points and weaknesses that you can improve upon before selling.

Starting the seller due diligence process well in advance of listing your business for sale will allow you to conduct a thorough review and then implement a plan to address weaknesses before it’s time to sell.

Click here to read the full article.

 

A recent article from Daily Herald entitled “Preparing to sell your business? Here’s what you need to know” discusses considerations for business owners contemplating a sale in the near future or down the road. Being prepared is critical to a successful sale.

Factors to consider when preparing for an eventual sale include:

  • What your sale priorities are
  • Properly valuing the business
  • Effectively organizing financials
  • Establishing long-term value that a buyer can get excited about
  • Successfully transitioning to the new owner to ensure continuity

Click here to read the full article.

 

A recent article from Entrepreneur entitled “How to Value Your Agency” explores ways to determine the value of an agency so that you can make informed exit decisions. Having a firm grasp on value is important to pricing the business right and fostering a successful sale.

Factors that can drive value include:

  • Historical earnings – revenue, EDITDA, revenue streams, seasonality, customer concentration
  • Market size – how big is the market, how much of it do you already have, how much more can you get
  • Competitive advantages – what do you have that your competitors don’t that allows you to execute
  • Location – what is your current lease situation and how well do you operate remotely

Click here to read the full article.

 
 
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