17 Aug Around the Web: A Week in Summary
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A recent article from Boss Magazine entitled “Should You Sell Your Business?” discusses important considerations for selling a business. It is critical to be sure that selling is the right move.
When contemplating the sale of your business, think about these factors:
- It takes significant time to properly prepare a business for sale
- The state of the economy and competitive landscape can affect the sale
- Inflation and rising interest rates can make it challenging to run a business and may motivate an owner to sell
- Personal reasons may motivate an owner to sell
- The sale of a business comes with certain tax implications
- Careful consideration must be given to whether all employees stay with the business after the sale
- Mitigating risks is easier than trying to pass them off to a buyer
- Resolving any legal issues before selling is important
- It is essential to carefully organize all important documents
- Finding a buyer takes considerable effort
A recent article from Entrepreneur entitled “4 Go-To Moves to Help Start Your Exit Strategy Now” discusses the important of developing an exit strategy, even if you don’t plan to sell anytime soon. Having an exit plan can make the process of selling a business much easier when the time comes.
Consider the following exit planning tips:
- Get familiar with what is involved with an exit strategy and what your options are
- Identify your 5 year goals so that your exit strategy can work towards them
- Have a valuation performed so you know how much your business is worth and if you need to work to increase the value before you sell
- Keep your exit plan flexible so that you can adjust as needed
A recent article from CEOWORLD Magazine entitled “Estate Planning Strategies for Business Owners Planning an Exit” explores the importance of exit planning and how to do it. Proper preparation can help make for a successful transition, especially from a financial and tax planning perspective.
When crafting your exit strategy, take the following steps:
- Determine how much money you will need to support your desired lifestyle after the sale
- Identify who you envision owning and running the business
- Decide if you will be making any charitable or family member gifts with business interests or sale proceeds
- Work with an experienced tax professional to properly plan
- Be thorough with your documentation