31 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 “Lenders Financing Business Acquisitions Looking for Seller Financing to Mitigate Risk” discusses how rising interest rates have impacted business acquisition financing, putting pressure on prices and multiples. Prices are cooling and sellers are increasingly having to take on some seller financing.
Previously, seller financing was most often sought after by the buyer looking to close a financing gap. But now, lenders are looking for partial seller financing to offset risk. Lenders want to know that the business can service the debt.
While seller financing isn’t always what a seller desires, it can have some positives including interest income and deferred or reduced capital gains tax.
Click here to read the full article.
A recent article from Viking Mergers & Acquisitions entitled “Selling A Business? Remember, Cash Is King. (Here’s Why)” explores the importance of cash flow and liquidity for determining the value of a business and attracting potential buyers.
Cash is king for several reasons, such as:
- Demonstrates Stability and Sustainability
- Assures Risk Mitigation
- Supports Growth and Expansion
- Facilitates Financing
- Enhances Valuation
Cash flow can be increased several ways, such as:
- Shift Your Mindset
- Run Your Salary Through Payroll
- Plan Ahead
- Engage a Professional Business Advisor
Click here to read the full article.
A recent article from Transworld Business Advisors entitled “The Rise of Recession-proof Businesses” explores economic shifts as a result of the Great Recession and the COVID-19 pandemic. Individuals increasingly left corporate America for a shot at entrepreneurship.
The industries seeing the most increase in closed transactions include restaurants, construction, beauty/personal, automotive and medical-related.
The industries that have been trending down include liquor-related businesses, real estate, business services and ice cream/yogurt shops.
