06 Jan 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 Street entitled “Due Diligence Checklist for Selling a Business” discusses the due diligence process and why it is important for the seller, not just the buyer. Due diligence is the process of reviewing information, and a buyer will likely be thorough about it. The seller should prepare for this process ahead of time so that everything is in order.
Key areas of due diligence to prepare for include:
- Growth history and growth potential
- Diversified revenue streams
- Profit margins
- Team culture
- Strong financial reporting
- Systematized operations
A recent article from Forbes entitled “Lessons From The Trenches: On Failing Fast And Preparing A Business For Sale” offers helpful advice for business owners who are contemplating selling their business. Preparing for the sale is critical to its success.
Consider the following tips:
- Have a realistic timeline for your strategy
- Build a full team
- Timing is everything
- Choose your buyer carefully
- Run your business where you run your life
- Go the route of non-process process
A recent article from Entrepreneur entitled “Are You Acquiring a Brand? This Is The Secret Formula to Calculating Its Real-Dollar Value” discusses how to determine the value of a brand and its equity in terms of dollars. There are quantitative and qualitative metrics that can be helpful in determining brand value and brand equity,
Brand value is the financial value of the brand and its assets. Quantitative approaches to calculating brand value may include market valuation, income valuation, and cost valuation.
Brand equity is a measurement of consumer sentiment and awareness of the brand. Qualitative approaches to calculating brand equity may include customer lifetime value, marketing ROI and brand awareness, and customer sentiment.