09 Jun 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 “Creating An Exit Strategy For Your Small To Medium Sized Business” discusses the importance of a proper exit strategy in order to foster a smooth transition and to maximize value. An exit strategy provides a roadmap of how you will exit and the steps you will take to get there.
Timing is very important when it comes to creating an exit strategy. It is best to determine when you would like to exit, considering internal and external factors, and then start the process well in advance.
Preparing the business for an exit strategy includes things like proper documentation, identifying potential buyers, and assembling a team of advisors.
A recent article from Troy Media entitled “Why due diligence is your friend when buying a business” explores the due diligence process and why it is so important. Due diligence comes after submitting a letter of intent, and it allows the buyer to examine and verify information about the business.
Due diligence may include looking at things like company structure, asset lists, financials, lawsuits, condition of equipment, inventory status, leases, accounts receivable, customer lists, licenses, permits, insurance, supplier agreements and much more.
The due diligence process should be structured and each piece of information should be systematically verified. This is essential to reducing buyer risk.
A recent article from Forbes entitled “How To Prepare For Your Life After Selling Your Business” discusses an important consideration when selling a business – life after the sale. For many business owners, their business is their life. When this chapter closes, what is next and are you ready for it?
Consider the following suggestions:
- Find your purpose
- Manage your financial security
- Invest in family cohesion
- Develop a new social structure
- Manage your time proactively