04 Nov 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 “Five Questions To Ask If You’re Thinking Of Selling Your Business” explores considerations for business owners considering an exit. These considerations will help determine if and when it is a good time to sell.
When contemplating a sale, ask yourself the following:
- What is the true value of the business?
- What net proceeds do you expect from a sale vs. what do you need to comfortably retire?
- What is the best time to transition?
- How should you deal with partners and/or family owners?
- How can you prevent sellers’ remorse?
Click here to read the full article.
A recent article from Woodworking Network entitled “3 important questions to answer before selling your business” discusses how to maximize the proceeds of a business sale. This is a common goal for sellers, and addressing a few key questions can help attain this goal.
Consider the following:
- Where are you in the business cycle?
- Where are your markets vis-à-vis the business cycle?
- Will waiting afford you the opportunity to increase your EBITDA?
Other important considerations include buyer types, valuation, liquidity needs and tax planning.
Click here to read the full article.
A recent article from Exit Strategies Group entitled “M&A Advisor Tip – Know Your Priorities” discusses the importance of seller priorities relative to the success of a business transaction. A lack of clarity on priorities can lead to a failed deal.
When a seller has identified their priorities, they are able to more easily identify the right buyer. Common priorities include culture fit, cash vs. seller financing, and salary vs. sale price. Once you know your priorities, you can establish what deal structure makes the most sense.
It is important to remember that positioning and negotiating starts on day one of the sale process, and buyer impressions are influenced accordingly.
