14 Oct 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 Divestopedia entitled “How Business Owners Can Thoughtfully Approach Exit Planning” discusses the importance of an exit strategy and how to develop yours. Attempting to exit your business without an exit strategy can be dangerous for the business and for you.
Key components of an exit strategy include:
- Outlining your vision for the future
- Developing a personal financial plan post-sale
- Assembling your deal team
- Identifying and reaching potential buyers
- Conducting due diligence
- Negotiating and completing the deal
- Transitioning the business
A recent article from Biz New Orleans entitled “Selling a Small Business Can Take Planning, Time and Professional Help” discusses the value that transaction professionals can offer business owners who wish to sell their business. If the business won’t be transitioned to a family member, then an outside buyer is the next likely option. But finding a buyer and coming to an agreement with them can be very difficult.
Business owners can enlist the help of a business broker or exit planner to help them reach a successful sale of their business. A business broker specializes in buying and selling businesses while an exit planner specializes in helping business owners develop a plan to sell at a specific time and a specific price.
A recent article from Lehigh Valley Business entitled “Key factors when preparing to sell your business” offers tips for business owners who are looking to sell their business. The effects of the pandemic, the current economic conditions, and the uncertainty of future changes in the financial world are making some business owners decide that the time to sell is now.
When it comes to selling a business, planning is essential. Consider the following tips when preparing to sell:
- Make planning a priority and don’t let the potential for change deter your planning process
- Build confidence in your future by leaning on the expertise of professionals such as a financial advisor or investment banker
- Set the business up to succeed without you
- Develop a thorough financial plan that satisfies your needs and the needs of those who depend on you
- Create a contingency plan in case an unforeseen event moves up the timeline