20 May Around the Web: A Week in Summary
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A recent article from Forbes entitled “How To Sell Your Business: What To Do Before, During, And After The Sale” offers tips and insights for business owners who are preparing to sell.
Key steps before the sale include:
- Organizing your financials
- Assembling your deal team
- Determining the value of your business
- Defining your transaction goals
Tips to consider during the sale include:
- Ask buyers to sign an NDA
- Lean on your deal team
- An LOI doesn’t equal a done deal
- Get familiar with the tax implications of the deal structure
After the sale, you’ll need to carefully consider what to do with the sale proceeds and where to go next in life.
A recent article from St George News entitled “5 mistakes many business owners make when selling their business” discusses common errors business owners commit when it comes to the sale of their business. This is a major event in the life of a business owner, so knowing what mistakes to avoid can be highly valuable.
Five common mistakes include:
- Failing to plan
- Making too many assumptions
- Not locating and organizing all important documents
- Leaving family out of the planning process
- Not allowing enough time
A recent article from Exit Strategies Group entitled “Valuation of Intangible Assets” examines the question of how to value intangible assets. By properly valuing these assets, a business can be properly priced for sale. There are three main approaches to valuing intangible assets.
The income approach converts anticipated benefits of intangible assets into value through a method such as the discounted cash flows method.
The market approach compares the intangible assets of the business to the intangible assets of similar businesses that have already been sold.
The cost approach quantifies what it would cost to replace the future service capability of intangible assets.