19 Jan 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 Viking Mergers & Acquisitions entitled “How Can I Sell My Business Fast?” offers advice for business owners seeking to sell in a timely manner. While the process of selling a business typically does take a fairly significant amount of time, utilizing the services of a business broker can put you in a more favorable position than trying to navigate the sale alone.
Business brokers specialize in selling and buying businesses, so they can bring a lot to the table. When selecting a business broker, ask them about the following:
- Their valuation process
- Their fee structure
- How they will maintain confidentiality
- What their process is
- Their experience level with the types of buyers your business is likely to attract
Click here to read the full article.
A recent article from Forbes entitled “How To Sell Your Business Using A Thoughtfully Planned Exit Strategy” discusses proper planning and key considerations for selling a business. A proper exit plan can maximize value as well as foster a successful sale and transition.
First and foremost, consider the finances of the business. Does the company have too much debt? How reliable is cash flow? How are you managing risk?
Additional key considerations for sellers include:
- Know your numbers
- Develop your brand story
- Enlist the help of transaction professionals
- Negotiate for the deal you want
Click here to read the full article.
A recent article from InlandEmpire.US entitled “ESOP Exit Strategy: Sell Your Business at Fair Market Value to Your Employees” discusses an exit option known as an Employee Stock Ownership Plan or ESOP. While an ESOP is not for every business, it can offer many advantages for some.
In short, an ESOP involves a leverage buyout in which a company borrows money to purchase shares and contributes shares to a trust as a benefit to its employees. The trust owns the shares of the company’s stock which results in an employee benefit plan for its employees.
Some pros of an ESOP include:
- Ability to sell quickly, confidentially, and at fair market value
- Flexibility to sell over time or all at once
- Employee retention
- Certain tax advantages
