08 Dec Around the Web: A Week in Summary
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A recent article from Forbes entitled “8 Major Factors To Consider When Selling Your Business” discusses the top 8 things to consider when deciding to sell your business.
Young Entrepreneur Council members share what they consider the most critical factors to consider before selling your business:
- Potential bad actors
- Your company’s price
- Implications on your lifestyle
- Your involvement after the sale
- Your company’s value over time
- Maintaining customer relationships
- The deal’s fine print
- The terms of the deal
A buyout offer can be alluring to a lot of business owners. But in all the excitement and potential funds, it’s crucial to remember important details that could make all the difference in the deal. By considering these 8 factors, you will be better off when deciding to sell your business.
A recent article from Irrigation & Lighting entitled “Make An Exit Plan” discusses why it’s important for any business owner to have a well thought out exit strategy in place to ensure a smooth transition when it comes time to part ways with the company.
Consider the following 3 things when creating your exit plan:
- Check your assets – be sure you have a balance sheet, income statement, and other financial data prepared.
- Consider the work – consider the team you currently have and whether you need to bring new players to the table to strengthen your negotiating power.
- Plan now for later – having a multi-year plan for the future can help show discipline and structure in addition to helping you be well-prepared.
A recent article from Morgan & Westfield entitled “7 Steps to Sell a Business Fast” discusses the 7 steps any business owner should take when they want to sell their business fast.
“What are the steps I’ll need to take to sell my business?” It’s a complicated process but you can simplify the procedure with a plan and increase your chances for a successful sale by properly executing each step of that plan. Consider the following steps:
- Prepare a confidential information memorandum (CIM) to provide a written overview of your business that answers key questions that your buyer may have.
- Confidentially market your business by determining your ideal buyer and creating a marketing plan that is designed to catch their eye.
- Screen potential buyers and ask them to sign a non-disclosure agreement (NDA) before you email them your CIM.
- Share information and meet with qualified buyers who have follow-up questions about the business.
- Negotiate, ask your chosen buyer for a letter of intent (LOI), and accept an offer.
- Manage the due diligence process by staying on track and organized to keep the momentum going.
- Begin preparing for the closing weeks in advance to reduce the risk of last minute surprises and falling behind schedule.
By following these 7 steps, you will ensure a fast and smooth transition out of your business.