12 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 Divestopedia entitled “Lessons Learned from Negative Buyer Feedback” discusses characteristics that make a business less salable and less valuable. By knowing these characteristics, a business owner can implement changes and improvements a few years before they plan to sell.
Top value destroyers include:
- Dependence on new sales rather than recurring revenue
- Overreliance on the owner
- Customer concentration
- Lack of competitive advantages
- Small market
Click here to read the full article.
A recent article from Sunbelt Network entitled “5 Steps to Take Before You Sell a Bakery” explores factors that foster a successful sale of a bakery. While the article focuses on bakeries, these factors are applicable to most businesses.
5 steps for a bakery owner to take prior to selling include:
- Develop an exit strategy
- Organize financial and legal documents
- Get a proper business valuation
- Identify opportunities to improve the business and implement a plan to achieve these improvements
- Enlist the services of a business broker to sell your business
Click here to read the full article.
A recent article from Exit Strategies Group entitled “Buyer’s top focus is employee team” discusses what buyers are looking for in a purchase opportunity: good employees. While staffing is currently a major challenge for businesses across the country, it is important to understand what buyers are looking for so that you can make adjustments to your business prior to selling.
In a recent IBBA and M&A Source Market Pulse Report, employees were identified as the top due diligence concern for buyers. Longevity, loyalty and work ethic were of particular importance. This is because buyers are looking for growth, and they need the talent to support this growth.
Key issue areas that buyers are focusing on include employee retention, culture, learning & development, cross-training, and niche high-demand skills.
