13 Nov Around the Web: A Week in Summary
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A recent article from Crain’s Cleveland Business entitled “Why exit planning is effective business planning” discusses why having an exit plan in place for your business is crucial and will be beneficial for any business owner in the long run.
It is important for all business owners to have an effective exit strategy early on when their business is still new to them. Waiting for the last minute before selling may not leave enough time to fix any known issues or problems within the business. This could then prevent owners from receiving the highest value for their business in the end.
Consider the following 3 reasons why exit planning can greatly enhance a business’s value:
- Owner readiness
- Business readiness
- The state of the capital markets
A recent article from Crain’s Cleveland Business entitled “Key considerations before exiting your business” discusses the 3 main areas of focus every business owner should consider before exiting their business.
Early in the process, having a realistic evaluation of your company’s worth is very beneficial. It could be helpful to give yourself more time to improve one or more aspects of the business’s performance, attract more buyers, and raise the price at which the business is sold before starting the formal sale process. Possible focus areas include:
“Creating an action plan can help you mentally transition from your current endeavor to the next stage.”
A recent article from Nolo entitled “8 Steps to Buying a Business” discusses the 8 steps anyone should take when thinking about buying an existing business.
Many people dream to have their own business, however, many people don’t want the hassle of starting from scratch and would rather buy an existing business and turn it into their own. Consider these 8 steps before taking that leap and buying a business:
- Find a business to buy
- Conduct your due diligence
- Choose a deal structure
- Determine a purchase price
- Sign a letter of intent
- Negotiate the purchase agreement
- Obtain all consents and approvals
- Close the deal
By following these 8 steps you will ensure a smoother purchase and be much more prepared for your new business endeavor.