14 Feb 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 Forbes entitled “From Passion Project to Lucrative Exit: How to Sell Your Business” provides guidance on selling a small service-based business by outlining five key steps for a successful sale.
One of the most important tasks is getting an accurate and up-to-date valuation of your business. As a small business, a good first step is to use a free and reputable online tool to compare your business with similar businesses in your industry that have been sold recently.
You’ll also want to streamline your business operations while going through the process of preparing your business for sale. Not only will this free up some of your time, but it was also help you fine-tune your business’s workflows. This is important because it helps present your business as a well-oiled machine to high-quality buyers, and because it will help ensure the business succeeds after the sale.
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A recent article from Smart Business Dealmakers entitled “Are You Really Ready to Sell?” highlights the experience of Sherri Yukel, the former CEO of Big Dot of Happiness.
After more than 20 years in business, Sherri decided to sell. This was not a decision that she came to lightly – in fact, she and her husband had set financial milestones years in advance. They knew how much they wanted in a sale, and if a seller did not meet that expectation, they did not move forward.
Leading up to the sale, they focused on increasing the business’s value, implementing systems like EOS (Entrepreneurial Operating System), and building a succession plan. Key personnel were retained, and gaps were filled, such as hiring an integrator to support the visionary role. They sought advice from wealth management and accounting firms, and when ready, engaged an investment banker for the sale process.
Despite feeling emotionally prepared, Yukel realized after selling that early retirement didn’t suit her personality and she now plans to pursue new ventures. She advises founders to carefully consider if they’re truly ready to step aside before selling their businesses.
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A recent article from Bankrate entitled “How to get a loan to buy a business” outlines the process of obtaining financing to purchase an existing business.
There are many advantages to buying an established business, one of which is that is typically easier to secure financing to purchase a business than it is to get financing to start a business. When preparing to apply for financing, there are a few pieces of information that you should gather. This includes your personal credit history, any past business owning experience, and information about the business you want to buy.
Popular financing options include:
Business term loans: This is a traditional type of funding that you can get from a bank, credit union, or an online lender.
SBA loans: SBA loans are backed by the U.S. Small Business Administration and can be found through the same means as business term loans. However, it might take longer to get the funding from an SBA loan, which is worth keeping in mind.
Seller financing: In some cases, you may be able to make a financial arrangement with the seller of the business and repay the seller according to loan terms that you’ve set together.
