26 May 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 “Deal Structures: How to Negotiate Assets Conveyed” discusses three types of assets conveyed in a business sale and important related considerations. These assets are part of the negotiation between buyer and seller.
The first asset type is inventory. A key negotiation here is how much inventory is included in the purchase price and how much is in addition to the purchase price.
The second asset type is net working capital, which is the difference between the company’s current assets and current liabilities. Net working capital may be added to the purchase price from the lender or requested from the seller.
The third asset type is work in progress, which is a job that is not complete. Key considerations here are how much of the job is complete and when payments are received.
Click here to read the full article.
A recent article from AZ Big Media entitled “How to prepare your business for sale” discusses the importance of proper preparation when it comes to selling a business and key steps to the preparation process. Without proper planning, it can be challenging to achieve a successful sale.
First, look at your business as a buyer would. This means asking tough questions to evaluate return on investment, risk and long-term growth potential.
Next, follow key steps including determining the value of the business, identifying how you can increase the value before you sell, developing achievable strategies, creating a plan based on these strategies, and monitoring the market.
Click here to read the full article.
A recent article from Markets Herald entitled “Saying Goodbye To Your Small Business: Signs It’s Time To Sell” highlights telltale signs it might be time to sell your business and steps you can take to prepare for the sale. Knowing when to sell and being prepared is crucial to a successful outcome.
4 signs it might be time to sell include:
- Risk aversion
- Burnout
- Lost drive and passion
- Desire to try something new
Key steps in preparing to sell include:
- Business valuation
- Gather financial documents
- Identify equipment and supplies that will be included in the sale
- Document major changes in your annual report
- Work to increase profitability and reduce costs
