02 Dec 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 AllBusiness.com entitled “Selling Your Business? Tackle These 6 Tasks for a Smooth, Profitable Sale” discusses potential deal killers business owners should take care of prior to selling the business. These issues can seriously derail a deal.
Avoid the following deal killers:
- Personnel issues – work to ensure leadership and essential employees are committed to staying with the business
- Failure to protect intellectual property – make sure any necessary patents, copyrights and trademarks are secured, assigned to the business, and transferable
- Lease complications – ensure the lease can be renewed by the business and future owners
- Corporate records are not up-to-date – proof of ownership, ownership agreements, etc. should be thorough, clean and up-to-date
- Outstanding liens – identify and remedy any liens and make sure the business is current on liabilities that could create an inchoate or statutory lien
- Contracts and agreements are not in writing – there should fully executed written contracts with vendors, suppliers, customers and consultants, and these contracts should be assignable to the new owner
Click here to read the full article.
A recent article from Inc. entitled “If You Want to Sell and Exit Your Business, Start Today” offers practical steps business owners can take to prepare their business for an eventual sale. Taking the proper steps is critically important to achieving a successful sale.
Consider the following steps:
- Build a succession plan that includes a leadership team
- Take a step back and make sure you as the owner are not at the center of everything going on with the business
- Be cautious with earnout agreements that can tie you to the company
- If you are sticking around after the sale, try to delegate any authority or functional roles prior to the sale
- Accept the fact that most entrepreneurs don’t last with the business after it is purchased by a large company
Click here to read the full article.
A recent article from Forbes entitled “6 Questions To Ask Yourself Before Purchasing An Existing Business” explores important considerations for those who are contemplating buying a business. There are many advantages to buying a business as opposed to starting one from scratch, but it is important to do so thoughtfully.
Ask yourself the following questions:
- Am I sufficiently familiar with this particular field?
- Who is the customer?
- What is the state of business?
- What’s the total cost of purchasing this company?
- What is the long-term growth potential?
- How do I grow the company?
