26 Aug 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 “Why boomer business owners should watch M&A cycles” highlights the state of the market and what this means for potential sellers. It is estimated that approximately half of U.S. businesses will transition ownership in the next 5 to 10 years.
Currently there are more buyers than sellers, meaning it is a seller’s market. There is an estimated $8.5 trillion waiting to be invested in acquisitions and growth. However as more baby boomers start selling, it is possible things could flip and there ends up being more sellers than buyers.
To help foster a successful sale, it is critical to thoroughly plan, prepare emotionally, make it part of your succession plan and consider staying on after the sale.
Click here to read the full article.
A recent article from Harvard Business Review entitled “Why Founders Are Afraid to Talk About Exit Strategies” discusses why exit planning is so important and some of the reasons it tends to get neglected. A lack of exit planning can spell disaster for the potential sale of a business.
Some of the reasons we may not talk about an exit strategy include:
- Being overly optimistic or confident
- Focusing on the present and not allocating time & energy to think about the future
- Investor concern over business owners building to sell
- Feeling that an exit plan could restrict risk taking
- The myth that acquisitions result in failure
Click here to read the full article.
A recent article from CEO Today entitled “Better Exit Planning For Retiring CEOs” discusses exit planning that is beneficial for both the business and the business owner.
When it comes to the business owner, it is important that exit planning includes proper timing, committing to a date, adjusting their role, and getting their pension in order.
When it comes to the business, it is important that exit planning includes preparing the board, structuring senior management, fostering sustainability, and managing communications.
