15 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 ColoradoBiz Magazine entitled “The 4-step process to selling your business” explores what is involved with the sale of a business. Following a proper process can help you avoid common mistakes and reach a successful sale.
Key steps in selling a business include:
- Getting a business valuation
- Signing a letter of intent
- Due diligence
- Negotiating a purchase agreement
Watch for common areas of dispute between buyer and seller such as working capital, earnouts, missing language in agreements, and valuation of pandemic affected businesses.
Click here to read the full article.
A recent article from Forbes entitled “5 Ways To Maximize Your Business Value When You Sell” offers tips for business owners to sell for top dollar. Knowing what makes a business saleable and what leads to a reduced price is pivotal.
5 steps to maximize the value of your business include:
- Set clear goals for the sale
- Figure out your current seller’s discretionary earnings
- Focus on building a great business for a great buyer
- Identify multiple buyers
- Develop a thorough understanding of all deal terms
Click here to read the full article.
A recent article from Divestopedia entitled “5 Core Tenets of Exit Planning” discusses the process of preparing for the sale of a business. To maximize the sale price, it is advisable to start the exit planning process two to five years before the business is put on the market. This allows time for increasing the value of the business, tax planning, market timing and transition planning.
5 central components of a proper exit plan include:
- Aligning personal, business and financial goals
- Gaining an understanding of what exit channels are available
- Identifying the value of the business and ways to increase the value
- Exploring tax saving opportunities
- Maximizing the sale price through seller due diligence, market timing and multiple buyers
