02 Sep 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 The Street entitled “How To Think Like a Buyer When Selling The Family Business” offers advice for business owners who are preparing for the sale of their company. By thinking like a prospective buyer, you can effectively get your business ready for sale so that it is attractive to these buyers.
Here are 4 tips for thinking like a buyer:
- Consider how a buyer will see your business including how well it is organized, employee morale, finances and processes
- Understand the different types of buyers including internal, external, strategic and financial
- Use an outside perspective to find and fix potential weaknesses
- Help prospective buyers see potential in your business by having clear financials, demonstrating scalability and investing in efficiencies
A recent article from Philadelphia Business Journal entitled “Curb appeal doesn’t mean your business is ready to sell. There’s a difference between attractiveness and readiness” discusses the importance of a business being truly ready to be sold so that the seller can sell on schedule and for the value they desire. However, a business being ready for sale is different than a business being attractive to buyers.
Attractiveness means it sparks initial interest in a buyer. Factors that may make a business attractive include the industry, products & services, brand recognition, longevity, intellectual property and profitability.
Readiness means both the owner and the business are in a strong position to successfully transfer ownership. Factors that contribute to readiness include the management team, systems, documentation, compliance, corporate structure, owner readiness and deal structure considerations.
A recent article from Birmingham Business Journal entitled “Tips on preparing to sell your closely held business” offers helpful advice on how to prepare for the sale of a business. This can be a challenging process, but with the right steps you can set yourself up for success.
Consider the following tips for sellers:
- Assemble an experienced deal team
- Start the process early
- Determine how much your business is worth
- Prepare yourself emotionally
- Maximize EBITDA
- Organize financials and documents
- Address tax issues
- Utilize an electronic data room