09 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 Forbes entitled “Selling Your Business: Three Steps To A Successful Exit” discusses the importance of exit planning. This process is intended to maximize value, satisfy goals, and avoid potential sale issues.
Consider the following exit planning steps that often get overlooked:
- Gain an understanding of the different types of buyers, the pros and cons of each type, and which type best aligns with your exit goals
- Analyze your business to make sure each function has a well-documented process that can be repeated and continued after the sale
- Create a data room consisting of documents that a buyer may wish to review during the due diligence process
Click here to read the full article.
A recent article from Viking Mergers & Acquisitions entitled “How to Value a Business: One Part Art…One Part Science” discusses the importance of demonstrating value when selling your business. When determining the value of your business, it is essential to consider both the numbers as well as other elements that may attract a buyer.
The science of a business valuation focuses on the numbers. Some of the most common numbers to factor in include cash flow, comparable sale prices, industry standards, equipment value, inventory value, and operational data.
The art of a business valuation focuses on subjective and intangible assets. Some of the most common include reputation, transferability, customer base, management team, patents, and licenses.
Click here to read the full article.
A recent article from Exit Strategies Group entitled “How to sell your business to a competitor” explores the option of selling your business to a competitor and how to go about doing it. While this is certainly an option to consider, it must be done carefully in order to preserve value and protect the business.
The following best practices can help make selling to a competitor a success:
- Approach other buyer types first and save competitors for last
- Maintain control of the sale process
- Protect confidentiality with an NDA and secure deal room
- Thoroughly vet every buyer
- Be strategic about when you release certain kinds of information
