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THOUGHT FOR THE DAY

Develop Your Exit Plan

Sep 07 2016
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Develop Your Exit Plan

First, you must understand why you are selling your business. In order to create a sound infrastructure for a fruitful exit, you will have to identify the elements that have led you to contemplate selling. Be honest and forthright about what's motivating you to sell. If you have an immediate need for an exit, this can equate to a lower sale price. In addition, by moving too quickly you eliminate the opportunity to strengthen the attractiveness of your offering prior to sale. In contrast, if you are more strategic and plan your exit at a slower pace, take the necessary time to properly prepare your business for sale, maintain flexibility with a willingness to finance a portion of the sale, the outcome is more likely to yield a qualified buyer who is willing to pay a higher price. Sellers' motivations have a direct impact on their desired terms for the deal and their expectations for the sale. Prospective bu ...

How Long will it take to Sell Your Business?

Aug 01 2016
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How Long will it take to Sell Your Business?

Though the correct answer is that no one can know for sure.  Most often it is price, terms, and conditions that sell a business.  The lower the price, the more affordable.  In addition, the lower the down payment and a greater amount of seller financing, the greater the chances of selling the business.  The average time is 7 months from listing to close, however, on larger companies, it can take 12 months or longer.  With this time frame in mind, it's important to be proactive when considering your exit strategy and get your "confidential" business evaluation sooner rather than later.

Buyers Return to the Marketplace

Jul 11 2016
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Buyers Return to the Marketplace

Most business owners plan to sell within the next few years.  A seller's market along with an aging baby-boomer population is causing many entrepreneurs to consider exiting. Recent reports from The International Business Brokers Association (IBBA) indicate that retirement remains the leading reason that business owners went to market.  In addition, buyers are returning to the marketplace in larger numbers due to the economic rebound. Buyers today are market educated and increasingly aware of the opportunities coming to market and are therefore ready to make a move when a strong company becomes available.  With the number of transactions increasing, seller confidence has also risen and the findings indicate that it is currently a seller's market.  Business owners selling now don't have to resign themselves to a buyer's market conditions.  As more and more baby boomers seek to retire and put their business on the market, the oversupply of business ...

"How much is my business worth", you ask?

Jun 28 2016
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My first response is to explain that the current market is typically what will dictate the value.  A business valuation can help determine an approximate value, however, it is really a matter of what a buyer is willing to pay and what you are willing to accept.  It's understandable that you would value how much blood, sweat, and tears you have invested in your business or how much money you have invested, the customer base you have built, whether you have a niche product.  These things may matter to you but not have an effect on the actual value.  The truth of the matter is that what you finally accept from a buyer is what your business is actually worth.

BEWARE OF WINDOW SHOPPERS WHEN SELLING YOUR BUSINESS

May 10 2016
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BEWARE OF WINDOW SHOPPERS WHEN SELLING YOUR BUSINESS

As a business owner, you learn to tolerate the window shoppers.  They come in, look around for a while, ask a few questions, and then leave empty handed. However, you learn to appreciate them because they may provide feedback to another potential customer, or give a good referral.  There usually is no harm in accommodating a window shopper, however, when it comes to selling a business, these types of so-called buyers are not ones you want to accommodate.  You want to avoid them at all costs, because in the end it will cost you valuable time and potential money.

Taxes, Taxes, Taxes!

Apr 22 2016
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Taxes, Taxes, Taxes!

Spring is here and soon you will see green everywhere you look—blooming trees, new grass, and for most people tax returns! However, if you are a business owner tax season looks a little different for you. Although you will not be eagerly anticipating seeing any green returned to you this season, you will still want to keep your eye on your green, especially if you are looking to sell your business. This spring, take the right steps toward getting your records in order. In specific your tax returns!