11 Aug Around the Web: A Week in Summary
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A recent article from Indianapolis Recorder entitled “Sell your business in nine simple steps” discusses the process of selling a business. It is important to follow a thorough process in order to achieve a successful sale.
Consider the following steps:
- Valuation – determining how much the business is worth
- Select an advisor – assembling your deal team
- Marketing preparation – developing your marketing materials
- Marketing sources – choosing your marketing channels
- Buyer interviews – meeting with prospective buyers
- Offer negotiation – negotiating price and terms
- Due diligence – buyer analysis of documents and information
- Purchase agreement – final document to transfer ownership
- Closing – exchange of ownership and funds
A recent article from Built In entitled “5 Signs It’s Time to Start Exit Planning” explores indicators that it may be time for a business owner to begin the exit planning process. It’s never too early to start, but sometimes it can be too late.
These are common signs it might be time to plan for your exit:
- You’ve been in business for at least two years.
- Life is pulling you in another direction.
- You and your partners disagree about the future of the company.
- You’ve lost your passion.
- Your business has had momentum for a while.
A recent article from Quality Magazine entitled “How to Navigate the Path to Successfully Selling your Business” explores exit planning and what business owners should know about selling their business. Planning is critical to a successful sale.
First, define your objectives – why do you want to sell? Then determine how much your business is worth and if it’s enough for what you would like to do next or if you need to take action to increase the value of the business.
It is important to remember what buyers will be looking for. Things like organized financials, a strong management team, minimal risk, and proper licensing & compliance are essential to have established before going to market. And don’t forget to assemble your deal team.