20 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 Inc. entitled “6 Steps to Valuing Your Business During a Recession” discusses accurately assessing the value of a business in order to make informed decisions when considering selling or seeking financing.
Consider the following steps:
- Review your financial statements
- Consider market conditions
- Determine the value of your assets
- Consider intangible assets
- Hire representation
- Identify the right approach
Click here to read the full article.
A recent article from Exit Strategies Group entitled “Avoiding costly M&A delays and deal failure” discusses common delays and how to avoid them when it comes time to sell your business. Delays can kill a deal, so it is important to avoid them as much as possible.
One common cause of delays is messy financials. Buyers will need to spend extra time and money reviewing your numbers, and if they don’t match up it is even worse.
Another common cause of delays is surprise discoveries. If you have any issues with the business, it is best to be honest and open up front with the buyer. They will find out eventually, and if it seems like you were hiding it they may wonder what else you are keeping from them.
A third common cause of delays is having an inexperienced deal team. Choosing inexperienced advisors to work on the sale can lead to extra time and unnecessary asks.
Click here to read the full article.
A recent article from Bankrate entitled “How to get a loan to buy a business” explores financing options for purchasing a business and the process that goes along with it. Being prepared before applying for financing is the best approach.
The loan qualification process will likely involve an assessment of your personal credit history and score, business credit history and score, and business experience.
When preparing to apply, things you will most likely need to gather include your social security number, recent tax returns, bank statements, business plan, letter of intent, and company financials.
Types of loans that may be an option include term loans, SBA loans, and seller financing.
