14 Oct 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 Philadelphia Inquirer entitled “For small businesses, this one document is like ‘having a will.’ Here’s what you need in a buy-sell agreement.” explores the value of a shareholder or buy-sell agreement. This agreement specifies how the business is to be transferred under certain conditions.
If a business has more than one owner, multiple investors, or involved family members, it is wise to have a buy-sell agreement to serve as a roadmap for unexpected ownership issues such as divorce, death, or new investors.
A proper buy-sell agreement entails a list of owners with how many shares each has, triggering events, how the change of ownership should occur, how the business is to be valued, funding requirements and a dispute resolution mechanism.
Click here to read the full article.
A recent article from Small Business Trends entitled “How to Sell Your Company for More” discusses what business owners can do today to increase the future sale price of their business.
Helpful tips include:
- Develop strong relationships with complimentary businesses
- Get your financial records in order and make sure they are accurate
- Hire an experienced attorney
Click here to read the full article.
A recent article from Elite Agent entitled “If you don’t plan your exit, you plan to fail” discusses the importance of exit planning and how to do it. Exit planning is preparing for the future transition of your business to another owner. This process, when done properly, is a multi-year process.
Core elements of proper exit planning include focusing on profitability, starting early, taking steps to increase the value of the business, and monitoring market conditions.
Exit options include an asset sale, full sale of shares and partial sale of shares. When deciding which option is best for you, it can be helpful to discuss it with your accountant.
