24 Oct Around the Web: A Week in Summary
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A recent article from Austin Business Journal entitled “Ready to sell your business? Follow these steps during the transaction and beyond” discusses important financial considerations surrounding the sale of a business. These financial considerations occur both before and after the deal is completed.
Before selling, assemble a team that can support the management of your wealth after the sale. Possible team members include a wealth advisor, estate planning attorney and CPA. The team can help with assessing legal structures, tax considerations, and your overall financial plan.
After selling, you will likely encounter many new opportunities. As you analyze these opportunities, think about the time, capital and expense requirements.
A recent article from Columbus Business First entitled “Time to sell your business? Here’s what you need to know” reviews key considerations when selling a business. Proper preparation is essential for a successful outcome.
Consider the following:
- Not all buyers are the same – a strategic buyer will likely want to install their own management team while a financial buyer will likely want current management to run the business
- Due diligence dictates deal pace – the more organized the seller is, the easier and quicker the due diligence process is likely to be
- Call the right advisors – build a deal team consisting of experienced legal, tax, accounting and financial professionals
- All deal terms must be considered – beyond the purchase price, consider non-compete provisions, representations, warranties and indemnification
A recent article from Tampa Bay Business Journal entitled “Selling the family business: 4 factors to address as you put the pieces together” explores critical factors for the sale of a business. Many owners may be contemplating a sale as valuations rise and available capital increases.
Before putting your business on the market, make sure the following factors are addressed:
- What is the right time for exiting the business, and how long could that take?
- Put your team together early in the process.
- Obtain a value of your company and see if it’s enough to accomplish your goals.
- Plan for income and estate taxes prior to sale.