27 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 BizBuySell entitled “Selling Your Business When “You Are The Business”” discusses why being a highly involved business owner isn’t always a good thing when it comes time to sell. In fact, if the business relies on you to operate it may be a deterrent to buyers.
Many business owners work long hours and are the ones to get things done. The business depends on them to run and succeed. While this is admirable, it’s not a good thing when the time to sell the business arrives. Buyers want your cash flow, not your job.
It is best to make operational changes prior to listing the business for sale. This may mean hiring additional staff or promoting current employees to fill managerial roles that you as the owner currently handle. Set the business up to run without you.
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A recent article from Crain’s Cleveland Business entitled “Want to sell your business? Here’s where to start” explores best practices for planning for the sale of your business. Proper planning can help set you and the business up for a successful sale.
One important aspect in planning for a business sale is determining how much the business is truly worth through a professional valuation. Knowing the business value allows for an opportunity to increase that number before the sale if necessary, set a proper asking price, and effectively negotiate.
Another important aspect is assembling your deal team. This team may consist of an investment banker, accountant, attorney and financial advisor.
It is also important for the seller to have an accurate understanding of their personal situation. How much money will you need to fund your next chapter in life and do you need to make a change to your lifestyle?
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A recent article from Up & Coming Weekly entitled “How quickly can (or should) I sell my business?” discusses the situation of needing to sell your business quickly, what to expect, and steps to help facilitate a successful sale.
Common reasons for a quick sale include a sudden change in personal circumstances, favorable or unfavorable market changes, and new opportunities.
Utilizing a business broker can be an excellent way to foster a successful sale. Business brokers can find and vet buyers, prepare the business for sale, and screen negotiations and paperwork.
A sale can be expedited by targeting the most likely buyers, casting a wide net, and adding incentives.
