27 Apr Around the Web: A Week in Summary
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BizBuySell recently released their 2022 Q1 Insight Report which offers data and observations from business transactions, business owners, buyers and transaction professionals. These insights give an in-depth look at the state of the business for sale market and where it may be trending.
Key findings include:
- Active for-sale inventory has increased 10% over the past year
- 55% of surveyed business owners cite retirement as motivation for selling
- Median revenue of sold businesses in Q1 was down 5% over the previous year, with median cash flow showing a 2% gain
- Median number of days on the market was down 5% in Q1 to 181 days
- 35% of buyers say they are seeking a service business
- Median sale prices for restaurants are up 51%
A recent article from Exit Strategies Group entitled “Six Benefits of Monitoring Company Value” discusses why it is helpful to know what your business is worth. Even if you aren’t planning to sell, having this information can be a great benefit to you and the business.
Understanding the value of your business can:
- Provide a report card to educate, align and focus executive teams
- Enable equity transactions
- Test the composition of your shareholder buy-sell agreement
- Provide a foundation for strategic planning and a roadmap to increasing value
- Educate owners and leadership teams
- Help with compliance for several scenarios
A recent article from Forbes entitled “Who’s Going To Buy My Business?” explores likely buyer types and how to become known and respected among these potential buyers. These buyers are most often within the same industry, so it is a delicate balance of networking while remaining competitive.
To help get to know these potential buyers, consider the following:
- Make connections outside your competitive geographic area
- Attend industry events
- Get involved in your industry
- Establish yourself as the expert
- Join a business growth organization