11 Dec Around the Web: A Week in Summary
The following information has been sourced by Business Brokerage Press for the benefit of the business brokerage community. The views of these articles do not necessarily represent the views of Business Brokerage Press. We hope you find this information helpful.
A recent article from The Hearing Journal entitled “The Exit Strategy: A Vital Part of Your Business Plan” discusses why it’s important to have an effective exit plan for your business.
The most common mistake made by entrepreneurs is to overlook the matter of how they will make income when it comes time to leave. Early decisions in a business have an effect on the exit. Your original business plan should ideally include a flexible and well-thought-out exit strategy.
Consider the following 6 exit strategy considerations:
- Focus on improvements throughout the years to maximize the sale price.
- Evaluate your business relationships and ensure that the business will be able to continue smoothly if any of these relationships are interrupted.
- Make sure that your personal finances as well as the corporate financials are in good standing.
- Keep up on all important documents up-to-date and stored properly, including your profit and loss (P&L) statements, balance sheets, and corporate tax returns.
- Determine what you want your role to be after the sale of the business.
- Consider all potential buyers and exit options and decide which will best meet your needs.
An exit strategy is a dynamic plan that can be modified over time to maximize the value of your practice and help you reach your ideal exit. A meticulously crafted exit strategy serves as a successful road map. It will guide your business’s expansion and direction as well as your strategic decision-making.
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A recent article from BizBuySell entitled “How to Expedite the Sale of Your Business” discusses the things any business owner should do if they want to sell their business quickly.
Entrepreneurs strategize years ahead of time for the sale of their company to enable ample time for exit planning and to optimize the exit value. But occasionally, circumstances—personal or professional—call for an early departure.
Consider the following 4 steps to help sell your business:
- Pricing Strategy
- Start with a market valuation
- Adjust your price accordingly
- Get documents organized
- Consider buyer incentives
- Offer seller financing
- Include a reasonable training or transition period
- Engage a business broker
By following these 4 steps, you will help ensure that your business sells for the maximum amount possible all while making sure the process runs smoothly.
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A recent article from BDC entitled “What are the steps to buying a business?” discusses the key steps in which any potential buyer should take when they are thinking about buying an existing business.
Purchasing a company is a significant and intricate deal. It can be overwhelming to try to think about the process all at once. Therefore, consider the following phases and steps in purchasing a business:
- Phase 1: Preparation
- Assemble a team of advisors
- Set clear objectives
- Write an acquisition plan
- Find a business to buy
- Phase 2: Initial and pre-sale negotiations
- Begin to arrange financing
- Research the business and meet with the seller
- Draft and negotiate a letter of intent
- Phase 3: Final negotiations
- Conduct a thorough due diligence process
- Negotiate the purchase price
- Secure financing
- Finalize the purchase agreement
- Phase 4: Post-merger integration
- Integrate your businesses
