21 Apr 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 “How To Know When To Sell Your Business” discusses important considerations regarding the sale of a business. Selling a business is an ongoing process with several stages, the first of which should be analyzing why you wish to sell.
Valid reasons for selling a business include:
- Burnout
- Freedom of schedule
- Personal
- Stepping down
- Skillset
- Risk tolerance
Determining your reasons for selling and creating a path forward can be started by asking yourself a series of key questions.
Click here to read the full article.
A recent article from Northern Nevada Business Weekly entitled “How to prepare your business for sale” explores several key steps business owners should take when preparing to sell in order to entice buyers. Simple cosmetic improvements are not enough.
Important steps in the sale prep process include:
- Analyzing if the business is financially ready for the sale
- Determining the reason for the sale
- Organizing at least 3 years of financials
- Getting all legal documents in order
- Delegating owner responsibilities to key staff
Click here to read the full article.
A recent article from BizBuySell entitled “Does Stock Market Volatility Affect Business Sale Prices?” discusses how the performance of publicly traded stocks and the median sales price of private business sales correlates and if this correlation also means causation.
Typically an increase in stock market performance should mean a decrease in the private business for sale market, and vice versa, since investors would likely deploy capital where it has the best chance to succeed. However the past few years has bucked this trend.
As the stock market rallied in 2021, so did the private business for sale market. The cause for this may have been monetary policy driving asset prices up. Now the Fed is restricting money supply to fight inflation, and both the stock market and private business for sale market are feeling the pressure.
