04 Aug 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 Entrepreneur entitled “How Much Time Do I Need to Sell My Business? First, Consider These 7 Factors.” discusses timelines for selling a business and what can impact these timelines. While it can generally take 6-12 months to sell a business, every deal is different.
Factors that can impact the timeline for selling a business include:
- Preparation and due diligence
- Market conditions
- Business valuation
- Finding the right buyer
- Negotiations and due diligence by buyers
- Legal and financial considerations
- Closing the deal
Click here to read the full article.
A recent article from Viking Mergers & Acquisitions entitled “Small Business, Big Exit: 5 Tips For Selling Your Small Business” offers practical tips for finding the right buyer and securing the best deal when selling a business.
Five tips for selling a small business include:
- Choose the Right Time
- Find a Dependable Broker Advisor
- Understand the Business’s Value
- Market the Business Well
- Close the Sale
Click here to read the full article.
A recent article from Exit Strategies Group entitled “Strong Business Acquisition Prices so far in 2023” discusses recent M&A transaction data from GF Data. This includes business valuation, volume, leverage and key deal term data.
Highlights from this recent data include:
- 2023 Q1 valuations on completed deals averaged 8.0x Trailing Twelve Months adjusted EBITDA, up from the 6.9x average in 2022 Q4 and in line with the 8.2x average in 2022 Q3
- Multiples for transactions between $10M-$50M have been trending above their 20 year average
- This rebound in valuation is not seen across all industries, those that are less impacted by inflation are the ones seeing increases in multiples
