18 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 Business.com entitled “10 Things to Do Before Selling Your Business” offers advice for business owners who are getting ready to sell. A successful sale involves several important steps.
10 steps for business owners to consider ahead of a sale include:
- Business valuation
- Hiring legal and financial professionals
- Hiring a business broker
- Establishing a fair asking price
- Organizing business documents
- Separating personal and business expenses
- Getting written offers
- Optimizing the appearance of the business
- Tying up loose ends such as how outstanding invoices will be handled
- Keeping the sale confidential
A recent article from Mercer Capital entitled “The Potential Buyers of Your Family Business” provides an overview of the different types of buyers who purchase businesses. When selling a business, it is important to understand these buyer types so that you know what motivates them and which might be a good fit for your business.
With an internal transition, possible buyers include a family member or an employee. Financing is an important consideration when it comes to an internal transition. If financing is an issue, an Employee Stock Ownership Plan may be an option.
With an external sale, possible buyers include strategic buyers and financial buyers. Strategic buyers might be a competitor or a complementary business looking to grow horizontally or vertically. Financial buyers include private equity groups, permanent capital providers and single/multi-family offices all of which are primarily seeking ROI.
A recent article from Transworld Business Advisors entitled “How to Find the Right Buyer When Selling your Small Business” offers advice for business owners who would like to exit their business and sell. Arguably the most important part of selling a business is finding the right buyer. By following a few key steps, a business owner can increase their chances of a successful buyer match.
4 steps to find the right buyer for your business include:
- Identify the characteristics of a buyer who can help you meet your transaction goals and who is a good fit for the business to succeed
- Get familiar with the different types of buyers and what motivates them
- Prepare and position your business in a way that appeals to the motivations of your ideal buyer
- Hire a business broker to take your business to market and find the right buyer