Cartoon & Tip
Most businesses will lose a certain amount of customers over time. This attrition can be caused by anything from customers who are unhappy to customers moving away.
The value of a business has a lot to do with the expectations of a buyer being able to maintain the current revenue levels (in addition to opportunities to grow the business). Buyers will want to see proven marketing programs in place that will fill that ongoing “leaking bucket”.
Key employees in place can be very important in the sale of a business!
Buyers are always interested to know if there are well-trained key employees that will stay with a new owner of the business. That expertise within the company's operations can be very important in the transaction and future performance.
Key employees can include top managers, department heads and other long-time employees in important positions throughout the company. In order to sell their business, owners must give t…
Technology and the internet are essentially changing every business in some way or other. It can be challenging, but business owners must keep aware of what ‘s going on in their industry and where it is headed.
Some businesses have a bright future, others need to make drastic changes. Business owners can search on the internet, go to trade shows and seminars, read books, articles, blogs, talk to others in the industry.
In order to have future value for a buyer, business owners can't ignore …
"Due Diligence" or the "Right of Inspection" gives the buyer the full rights to inspect all items in a business -- financials, equipment, inventory, premises and anything else. And if the buyer finds any material discrepancies, he or she usually has the legal option of backing out. Some transactions fall apart during due diligence, only because the sellers have ignored fixing the problems of their business and just hoped for the best.
No matter what price a business owner wants for his or her company, the market is the true indicator of what buyers are willing to pay. Selling a business can be very emotional - all the hard work over the years, attachment and loyalty to employees, the profitability in the past, etc., etc. But if the business has been properly presented to the market and there are offers, the business owner must pay attention to "the writing on the wall". He or she should negotiate hard, but must consider th…
Many business owners try to determine the price of their business based on how hard they have worked over the years. But the market will tell them that the value is really what it is worth to a new owner in the future. As a result, there are many factors to examine – equipment, employees, market position, technology – the list goes on and on. Business owners should get a business valuation performed by a professional to get a real sense of market value.
We all hear a lot about what we SHOULD BE DOING from consultants, advisors, business coaches -- even our spouses. But for whatever reason, we don't always do what is best for us.
Business owners' careful planning for leaving their business is crucial to getting top dollar or smoothly passing it on to a relative. The Exit Planning process can take years and it is wise to seek professional advice in identifying the important issues and taking the right steps.
Many businesses are loaded down with problem issues that can affect the sale of the company.
This baggage can be in the form of overpaid and/or unproductive employees, outdated or unused equipment, expensive leases on old equipment, unsellable inventory or an expensive lease on outmoded facilities.
Buyers can struggle with these issues and sometimes walk away. Business owners must take steps to deal with this baggage before they try to sell their company.