Cartoon & Tip
"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This baggage can be in the form of overpaid and/or unproductive employees, outdated or unused equipment, expensive leases on old equipment, unsellable inventory or an expensive lease on outmoded facilities.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.
This pandemic is hard and it’s not fair. And certainly no one could see the scope of its impact coming.
As bad as it is for a business, it can be even worse for others. The business owner has to do everything possible to find answers by being creative, determined and providing leadership.
By contacting the SBA and the bank(s) for new loans or delays in payments, researching the internet to see what others are doing, using the resources of their association, considering new products or servi…