28 Jul 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 Exit Strategies Group entitled “M&A Advisor Tip: Employee retention adds business value” discusses the importance of your staff when it comes to the sale of your business. Businesses across the country are currently struggling with staffing, which means it is likely a significant concern for buyers.
When it comes to employees, buyers are often looking for low turnover, high quality training, cross-coverage ability, sustainable wage increases and retirement plans, leadership potential, etc.
Retention strategies include minority equity shares, retention bonuses, etc.
Click here to read the full article.
A recent release from BizBuySell of their 2022 Q2 Insight Report reviews the current state of the business-for-sale marketplace. This report analyzes listing prices and closed transaction data to assess the health of the marketplace and the economy.
Key findings of the report include:
- Prices reduced to accommodate buyer cost of capital
- Sellers are more realistic about valuation amid economic uncertainty
- Rising costs cut profits, labor pains continue
- Services and “recession proof” businesses remain popular among buyers
- Rate hikes headline small business market outlook
Click here to read the full article.
A recent article from Inventiva entitled “How To Sell Your Business? Steps To Follow For Selling Your Business” offers advice for business owners who are seeking to sell. Planning ahead is critical to a successful sale.
Key steps to selling a business include:
- Evaluate why you are selling, what your future plan is, if the business is free of liabilities, and if your business documents are in order
- Understand the value of the business and how much you need personally from the sale
- Determine the opportunity cost of selling the business
- Set a realistic asking price
- Identify the ideal buyer type
- Target multiple buyers
- Utilize a legal professional to draft sale agreements
