23 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 Foundr entitled “How to Sell Your Business: 5 Tips from a Business Investor” discusses the importance of planning for an exit. Buyers are looking for businesses that meet certain criteria, so it is essential to position your business in a way that appeals to these buyers.
To prepare your business for an eventual sale, consider the following tips:
- Your Business Needs Structure and Processes
- You Need a Stable Management Team
- Your Business Model Must Be Scalable
- You Must Have Internal Documentation
- You Need Strong Relationships
A recent article from Vending Market Watch entitled “Mergers and acquisitions update: What to expect – when you’re expecting to sell” explores how important a business broker can be when selling your business and important factors to consider regarding the sale process.
Keep these key elements in mind:
- Your business broker will help you establish an optimal yet realistic asking price
- Buyers will expect to see business documents such as profit and loss statements, balance sheets and equipment lists
- It is important to accurately portray your staffing situation and to keep your employees unaware of the sale
- Selling a business can take several months, but the more prepared you are and the more organized you are in providing materials to your business broker the quicker the process will be
- Your business broker will qualify buyers and supply them with key documents to present your business
A recent article from AZ Big Media entitled “4 things to keep in mind when selling your business” discusses key considerations for the sale of a business. An organized and well prepared exit strategy is essential for a smooth transaction.
Selling a business takes time. It is best to start the process at least a year before you want to actually say goodbye. This will allow you to properly position the business and organize all of your key documents that buyers will want to see such as financial reports and tax returns.
It is important to be honest with yourself and aware of your situation. Do you have a partner who may want to buy you out? Is there a buyout agreement in place? Is the business making money? What hurdles are in your path?
Be sure to keep the sale confidential. Utilize an NDA with all potential buyers. You don’t want customers or competitors to discover that you are selling.