12 Oct Around the Web: A Week in Summary
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A recent article from Raincatcher entitled “How To Sell A Business In 2023” discusses all the steps you need to sell your business for maximum value.
Selling your business can be a momentous decision, one that can greatly impact your financial future and open new doors of opportunity. To ensure that you maximize the value of your business during the sale, it’s crucial to follow a well-thought-out plan. The following are 6 steps every business owner should take when deciding to sell a business for the highest possible selling price.
Consider the following steps:
- Determine the value of your business.
- Get your financial statements in order.
- Increase your profitability.
- Plan your exit strategy.
- Partner with a trusted business broker.
- Qualify potential buyers.
A recent article from LegalZoom entitled “How to Purchase an Existing Business” discusses tips to take into consideration when trying to buy an existing business.
If you’ve already decided that purchasing a business is the right choice for you, you may still have questions. Namely, how do you proceed? Here are some suggestions to help you start on your path to profits and success.
- Consult a business broker.
- Check the credit history.
- Talk to the customers.
- Talk to employees.
- Evaluate, investigate, research, and explore.
- Negotiate the best deal possible.
A recent article from The Virginian Pilot entitled “Local entrepreneurs need to plan their exit early” discusses why business owners need to have an effective exit plan when thinking about exiting their business.
Local business owners who are ready to exit their business have to make hard decisions on whether now is the right time to sell or whether they need to show patience until circumstances shift.
To understand the current state of affairs for owners looking to sell, we conducted a survey in April of over 500 U.S. business owners. Owners selected for the survey either were looking to sell their business in the next five years or recently sold a business.
Here’s what was found after the study:
- Market conditions are a key concern.
Our study found 40% of business owners regret that they did not sell their business during recent periods of higher valuations and 61% were concerned they will not get a proper valuation for their business when they sell. While owners cannot control market conditions, they can prepare themselves for an eventual opportunity that will come along at some date.
- It’s never too early for local business owners to prepare.
Selling one’s business in times like these is somewhat like the stock market during a bear run. Those who can bear to keep running their business until times improve should strongly consider it. But the planning for that eventuality should start today.