20 Jul Around the Web: A Week in Summary
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A recent article from ThinkAdvisor entitled “6 Questions to Ask Before You Sell Your Business” discusses key considerations when planning an exit. The more prepared you are, the better the chances of a successful sale.
When contemplating the sale of your business, ask yourself the following questions:
- Are you really ready to sell?
- Are you happy and satisfied with all you’ve accomplished?
- Are you financially ready?
- Are you retiring to do something specific?
- What is your business worth?
- What makes your business attractive to a buyer?
A recent article from Kiplinger entitled “How to Control Your Business Exit” discusses ways to prepare for an eventual sale of your business so that you achieve the outcome you desire. Planning ahead is essential to controlling the financial elements of your exit.
Three ways to prepare for the sale of a business include:
- Setting a clear timeline well in advance
- Identifying who you wish to sell to and properly vetting buyers
- Determining funding options for the buyer, including potential seller financing
A recent article from Entrepreneur entitled “Is Now the Right Time to Sell Your Franchise to a Private Equity Firm?” explores the pros and cons of selling your franchise to a private equity firm. Private equity firms are currently acquiring franchises at a high rate and at premium prices. This presents a significant opportunity for franchise owners.
Some of the advantages of selling to a private equity firm include cash infusion, management expertise, corporate connections, and increased efficiencies.
Some of the disadvantages of selling to a private equity firm include giving up at least some control and yielding autonomous decision making power.
Before engaging with private equity firms, it is important to identify and organize your financial statements, capital needs, legal documents, and unit level economics.