26 May 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 New Haven Register entitled “Connecticut Money: Business owners need an exit strategy” discusses what business owners should consider in relation to an eventual sale. For a variety of reasons, the day will likely come that you decide to sell your business. Without proper exit planning, the sale may not go how you envision it.
Helpful tips for preparing your business to sell include:
- Get familiar with all potential buyer types
- Develop a transition plan to protect the longevity of the business
- Keep making improvements to the business
- Assemble your deal team
The sooner you start the exit planning process, the better.
A recent article from Forbes entitled “Before You Retire Early, Sell Your Business” explores what to do with your business when you are starting to plan for retirement. Many business owners are considering retiring early after the stress of the pandemic. But what does that mean for their businesses?
Rather than simply walking away early, take some time to bolster the business and sell it. The proceeds from the sale will make retirement easier.
To strengthen the business, build its value, and increase the appeal to buyers, consider the following tactics:
- Focus on the products and services that sell well
- Incentivize your team
- Strengthen leases
- Ditch money-losing activities and offerings
A recent article from Exit Strategies Group entitled “Fair Market Value – what does it mean? Business Valuation Standards of Value Terminology” examines a common term in the business valuation world – fair market value. Whether you are a seller or a buyer, having a strong understanding of fair market value is very important. So what is it?
A widely accepted definition of fair market value is that of the IRS: “…the price at which the property would change hands between a willing buyer and a willing seller when the former is not under any compulsion to buy and the latter is not under any compulsion to sell, both parties having reasonable knowledge of relevant facts.”
Other common standard of value terms include Fair Value (dissenting SH, minority oppression cases), Fair Value (financial reporting), and Investment Value.