Around the Web: A Week in Summary

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 St. Louis Inno entitled “Now could be the best time to sell your startup – learn why and how to prepare” discusses why it is a good time to sell a business and best practices for going about selling. If you are considering selling your business, good timing and proper preparation can add up to a successful sale.

There are a few reasons why it is a good time to sell. Buyer demand is up with hungry, funded buyers. Valuations and sale prices are up. Businesses who have utilized technology to adapt and thrive over the past two years are especially appealing.

To properly prepare for the sale, a business owner should put together thorough financials that are ready to present. It is also wise to assemble a deal team comprised of experts such as a business broker, CPA and attorney.

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A recent article from Kilgore News Herald entitled “Financial Focus: Does your business have an exit strategy?” explores key steps in the exit planning process. While you might not be thinking about selling yet, it’s important to plan for an eventual sale so that you and your business are ready when the time comes.

Consider the following exit planning steps:

  • Start planning early, several years in advance
  • Determine how much you need to sell for in order to fund your retirement
  • Enlist the help of financial, tax, legal and valuation professionals
  • Involve your children in the process relative to how they will be affected by the sale

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A recent article from Divestopedia entitled “Private Equity Deal Sourcing Strategies in 2022” discusses ways that private equity fund managers can find businesses to acquire. There are several options to consider which are each beneficial in their own way.

A fairly new option is fee-for-service deal sourcing. This involves a third party service focused on generating leads for a set fee. This can be a lower cost option.

Another option is conducting internal efforts. This means building an internal team focused on generating, analyzing and approaching leads. This can help give full control over the process.

A more traditional option is hiring a buy-side (or M&A) intermediary. The intermediary will source and qualify leads, as well as move a deal through the stages to close. They typically charge some combination of a retainer and a success fee. This option can offer highly vertical and regional opportunities.

Lastly, there is the option of deal platforms. These platforms help connect buyers with intermediaries representing sellers. This option offers a more integrated approach for those who are tech savvy.

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