02 Feb 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 Forbes entitled “Thinking About Selling Your Business? Avoid These Five Costly Mistakes” discusses common pitfalls that can impact the value or salability of a business. If you might want to sell your business someday, it is important to avoid these mistakes.
Five costly mistakes include:
- Choosing the wrong asking price
- Failing to properly plan
- Not hiring professionals to help you
- Having disorganized or incomplete documents that a buyer will want to see
- Picking the wrong buyer
A recent article from Yahoo Finance entitled “Sunbelt Business Brokers Reveals Guide to Selling a Business for a Premium Price” offers advice for business owners regarding the process of selling their business. By taking a systemized approach, an owner will be better positioned to sell for top dollar.
Five key phases in the sale process include:
- Hiring a business broker
- Valuation and development of a buyer profile
- Creation of a marketing strategy
- Negotiation and due diligence
- Escrow and closing of the sale
A recent article from ACHR News entitled “How to Sell Your HVAC Business to Family” explores succession planning for family businesses. Eventually the owner will wish to retire, and the next generation may be interested in taking over.
Top takeaways from the article include:
- Join an industry support group to gain perspective from others
- When it comes to financing the sale, SBA loans can be an excellent option
- Hiring a business intermediary on the sell side can help keep things professional and methodical
- Business financials and buyer documents will be needed for bank financing
- Partial seller financing might be necessary
- Emotions are to be expected, but it’s important to manage them