05 Sep Around the Web: A Week in Summary
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A recent article from Tax Assist Accountants entitled “How To Sell A Business” discusses 7 steps every business owner should take when selling their business.
Consider the following:
- Prepare the business for sale.
- Value the business.
- Advertise the business and find a buyer.
- Negotiate and agree the sale.
- Look after your employees.
- Inform the government.
- Pay appropriate taxes.
A recent article from Quality Magazine entitled “How To Navigate The Path To Successfully Selling Your Business” discusses several tips on how to sell your business effectively and efficiently.
Planning to sell or exit your business is a big step, one that requires careful thought and strategic decision-making. It’s like preparing for a new and exciting chapter in your life, because that’s exactly what it is. But the difference between the journey being smooth and rewarding or difficult and stressful is a result of how well, and how far in advance, the planning is done. Managing the early stages of exit planning will set the stage for a successful transition.
Consider the following:
- Plan your exit plan properly.
- Gather all financial records and make sure they are accurate, up-to-date, well-organized and documented.
- Evaluate your current team to ensure that the best people are in the right seats.
- Make sure the business is compliant with laws and regulations.
- Review legal documents and current licenses to ensure there are no issues.
- Have an “A-Team” to back you up. (Attorneys, Accountants, M&A Advisor, etc.)
A recent article from Business Record entitled “Family-owned business succession: To sell or keep the business in the family?” discusses a looming decision for millions of baby boomers – what to do with their business? As retirement approaches, a decision will have to be made about how to transition out of the business.
According to a recent PwC survey on succession planning, 78% of respondents said protecting the business as the most important family asset is the top long-term goal, however only 34% have a robust, documented succession plan or exit strategy. This is a serious issue.
As business owners develop their much needed exit plan, consider the following questions:
- Do you want to preserve the legacy of a family business?
- Do you wish to transfer ownership to the next generation?
- If family succession is not an option, do you want to sell to existing employees?
- Are your community and local residents dependent upon your business?
- Would it be advantageous to consolidate with a competitor or strategic partner?
- Are financial considerations obligating you to obtain the highest value possible?
- Are you interested in running a confidential auction process to increase the likelihood a buyer will pay a premium?