29 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 BizBuySell entitled “10 Things Experts Want You to Know Before Buying or Selling a Business” shares helpful advice from M&A advisors, business brokers, certified appraisers, and an SBA lender regarding buying a business and selling a business.
Consider the following tips:
- Sellers Can Get Their Business Listing Pre-Qualified for an SBA Loan
- No One Will Pay You for a Business That Amounts to Working 60 Hours a Week at $16/Hour
- Your Business May Be Worth More If You Stop Working So Hard
- Before Making an Offer to Buy a Business: Know the Difference Between Cash Flow, Earnings, SDE and EBIDTA
- Know What Is (and Isn’t) Included in the Price of Small Business Asset Sales
- Retaining Key Employees Is Critical to Selling a Business
- Set and Defend Your Asking Price by Using Third Party Business Appraisals
- Buying a Poorly Performing ‘Turnaround’ Restaurant Can Be a Great Investment
- Now is a Good Time to Buy a U.S. Manufacturing Company
- Minority and Veteran Business Buyers: Don’t Overlook All Your Available Resources
Click here to read the full article.
A recent article CNBC entitled “The biggest mistakes owners make when selling their business” discusses key mistakes business owners should avoid when selling. It is estimated that 80% to 90% of business owners have their financial wealth locked up in their companies, so there is a lot at stake when selling.
Five key mistakes include:
- Failure to plan
- Not involving professionals early
- Insisting that kids are the right next owner or not considering children as the successor
- Not planning for the after-sale
- Being a helicopter business owner
Click here to read the full article.
A recent article from Northern Nevada Business Weekly entitled “Plan your exit strategy before preparing to sell” discusses the importance of exit planning for a successful sale. A well-crafted exit strategy can result in a higher sale price and a smoother transition.
One key step in developing an exit strategy is to get a thorough understanding of potential buyer types and what they are looking for. This will allow you to make improvements to the business to make it more attractive to these buyers.
Another key step in developing an exit strategy is to understand what happens during and after the sale. This involves things like the business transition, taxes, estate planning, key personnel, and contracts.
