06 Jul Around the Web: A Week in Summary
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A recent article from Inc. entitled “How to Avoid Seller’s Remorse: 3 Tips for Letting Go of Your Business” offers helpful advice for business owners who are interested in selling their business. The stark reality is many businesses that are put up for sale are never sold, and of those that are sold, many sellers end up regretting their decision to sell. The good news is there are ways to help avoid these scenarios and achieve a successful, happy sale.
First, it is important to identify your desired outcomes. This may include what type of buyer you want to sell to, how you want the sale to impact your staff, what type of deal structure is best for you, and what future you want for the brand.
Second, make sure everyone is on the same page when it comes to values. When the seller and buyer share the same set of values, everyone is in a better position to walk away happy.
Third, define your motivators beyond just money. This might mean gaining more opportunities for your employees, providing your customers with enhanced services, or working alongside industry experts.
A recent article from Transworld Business Advisors entitled “Thinking of Selling Your Beauty or Personal Care Business? What You Need to Know in 2022” shares tips for how to successfully sell a hair salon, massage practice, spa, tanning salon or other beauty/personal care business. The industry has rebounded from the pandemic and there is plenty of room for growth, which is good news for sellers and buyers.
An important element in this industry is the location. Is it in a high traffic area? Is there ample parking? Is it easy to get to? Is the equipment in proper working order? Do you lease or own the space? Make sure your location is in its best condition and that you have a plan in place of how you will transfer it to the new owner.
When you are ready to sell, there are many critical steps to take. Three of the biggest include a business valuation, getting your financials & assets in order, and hiring a business broker.
A recent article from Castanet entitled “How to sell your business” discusses important steps a business owner may wish to take when approaching the sale of their business. Planning ahead and taking the proper steps can help foster a successful sale.
Consider the following tips:
- Enlist the help of experienced transaction professionals early in the process
- Gather all of the important documentation that a buyer may wish to see such as financial statements, tax returns, and asset lists
- Have a business valuation performed
- Cast a wide net for buyers
- Make sure your staffing is solid
- Determine what you will do with the proceeds of the sale
- Have a backup plan in case you are not able to sell