20 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 Forbes entitled “Is Your Business Sellable? Focus On These Five Areas For A Successful Exit” explores how business owners can increase their chances of a successful sale. The reality is the majority of businesses will never sell, so taking action to improve the odds is a prudent move.
To foster the successful sale of a business, consider the following:
- Build a business, not a job, meaning grow the bottom line and make sure the business can operate without you
- Keep clean, thorough and accurate financial records
- Resolve any significant customer concentration or reliance on a supplier
- Have the documentation to support your valuation
- Figure out what your life is going to look like after the sale
Click here to read the full article.
A recent article from The Good Men Project entitled “Buying a Franchise? Ten Questions That Can Save You Some Pain” explores important considerations when it comes to purchasing a franchise. While a franchise may be an appealing option, it is critical to thoroughly evaluate this significant decision.
When evaluating a potential franchise purchase, ask the following questions:
- Why are you motivated to buy this particular franchise?
- How did the franchise come to fruition?
- Why did the founders decide to franchise?
- How much funding do you need?
- What are the ongoing franchise costs?
- Are existing franchise owners making money?
- Where will your franchise be located?
- What level of support do franchisees receive?
- What territory protections and restrictions will you have?
- Who is the official franchise trade body in your area?
Click here to read the full article.
A recent article from Transworld Business Advisors entitled “Fees and Expenses to Expect When Selling a Business” discusses common costs sellers can expect to incur when selling their business. While the focus is often on how much money you will receive, it is also important to consider the costs to truly realize what you will walk away with.
A few key common costs for sellers include:
- Business broker fees
- Professional fees (i.e. attorney, CPA, etc.)
- Hidden costs such as taxes, appraisals, employee severance & vacation time, and lease assigning issues
