04 Aug 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 Alamosa News entitled “Watch for these signs to know it is time to sell a business” discusses the decision to sell your business. There is a substantial amount of capital and loans available right now for business acquisitions. So how do you know if it’s the right time to sell?
If you’re experiencing any of these signs in your business, it might be time to consider selling:
- You receive a once-in-a-lifetime offer
- You are feeling burned out
- You are falling behind on industry trends
- The business is at its peak
- Your professional goals have changed
- You have experienced a personal tragedy
- You are ready to retire
A recent article from Small Business Trends entitled “Buying a Business Checklist” explores the process of purchasing a business. Buying a business is a great way to hit the ground running as a business owner, offering an existing operation to take the reins of rather than starting from scratch with a new business.
The buying process involves deciding what kind of business you would like to buy, searching for available businesses, selecting the right one for you, going through your buyer checklist, securing financing, and finalizing the deal.
Some of the items to add to your buyer checklist include:
- Evaluating the local business community
- Getting a thorough understanding of the business’ inventory
- Clearly identifying equipment assets and intellectual property
- Completing thorough due diligence
- Reviewing all legal documents
- Analyzing historical financials
- Determining existing debt and payoff plans
A recent article from Forbes entitled “Is This The Right Time To Sell Your Business?” discusses why many business owners are choosing to sell now. You might think it’s because they are reeling from the pandemic. However there are actually many favorable conditions for sellers at the moment.
The economy is rebounding from a tough year. Businesses are able to return to more normal operations, employees are coming back to work, and consumers are getting out and spending.
Many buyers spent 2020 on the sidelines. But now they are ready to get back in the game and make deals happen. These buyers have money to spend and are competing for quality acquisitions. This helps drive selling prices up.
There is also the real possibility that the capital gains tax and income tax for high earners may increase over the next few years. These tax hikes haven’t hit yet, so many business owners are considering selling now rather than waiting until taxes increase.