08 Dec 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 Nasdaq entitled “Sell Your Business the Right Way (Don’t Make These Mistakes)” discusses what business owners commonly do wrong when selling their business. Avoiding these mistakes can help your chances of a successful sale.
Common seller mistakes include:
- Lack of preparation
- Not enlisting the help of a sell-side advisor
- Not knowing what you financially need from the sale
- Making it known that your business is for sale
- Assuming a buyer is qualified
- Not realizing that seller’s remorse is common
Click here to read the full article.
A recent article from Sunbelt Network entitled “How to Make an Offer on a Business” offers advice for those seeking to buy a business. The process of buying a business involves research, communication and preparation.
Before you make an offer, review financial documents to get a thorough understanding of the position the business is in. Once you feel comfortable putting together an offer, think about what the listing price is, how much you are willing to pay, how much of a down payment you can afford, and how much financing you can get. Then think of a good starting point for your first offer, understanding that there is likely to be a counter-offer.
Your offer should be in writing. This letter of intent may include things like:
- Refundable deposit to be held in escrow
- Purchase offer
- Down payment
- Terms for balance
- Payment schedule
Click here to read the full article.
A recent article from Vending Market Watch entitled “Q&A: business broker Mike Kelner on selling and buying in 2022” explores considerations for owners of vending, micro market and office coffee operations who may be contemplating a sale. After deal activity mostly halted due to COVID-19 in 2020, things have picked up again in 2021. However the pandemic is still impacting the industry.
Important considerations for sellers include:
- Buyers are looking for how and when sales will rebound
- Buyers are seeking profitable, well-run businesses with room to grow
- Buyers like recurring revenue
- Industry recovery may lag the national economy because of continued remote working
