07 Jul 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 “Exit on Top: Why Now Is a Great Time to List Your Business for Sale” discusses current conditions that are favorable for selling a business. In fact, many business owners are accelerating their exit timeline.
Key indicators demonstrating a favorable environment to sell include:
- The economy is showing signs of strength such as a robust labor market and resilient banking system
- BizBuySell’s business-for-sale marketplace has experienced a 27% increase in monthly online visits compared to the previous year
- Strong financials were reported by businesses sold in the first quarter of 2023, showing that buyers are looking to purchase businesses with proven performance
A recent article from Entrepreneur entitled “3 Essential Tactics You Need Do to Help Your Company Sell” discusses the importance of developing an exit plan early in the life of a business and tips for doing so effectively. Building a sellable business not only sets the stage for a successful exit, it also benefits the business owner in the short term.
It is important to create scalability. This can be achieved by implementing technology, hiring leaders, having financials regularly audited, and building human capital.
To optimize the value of a business, consider enhancing operational efficiency, optimizing gross margin and EBITDA, and diversifying the customer base.
A recent article from Insider entitled “How a succession plan can help protect you, your family, and your employees” explores the importance of succession planning. The stark reality is that 78% of businesses have no transition team and 39% have no transition plan.
A succession plan of course details how to sell the business. But it also addresses what employees can do if the business owner is unable to work, or what happens if the owner’s family must sell the business. It protects ownership, employees, family and other key stakeholders.
The basic elements of a succession plan include timing, price, successor, partners, exit strategy and personnel.