Around the Web: A Week in Summary
The recently published Axial article entitled “Selling? Look for a Buyer Who’s Walked a Mile in Your Shoes” explains the benefits of due diligence and patience when selling a business. The article outlines the sale process of the footwear brand Flojos, the pride and joy of the Lins, a couple that built the company into a $50 million+ business over their tenure as owners and operators.
After finding an M&A advisor with experience in the consumer products field, the Lins focused on finding a buyer that would understand and succeed in the business, as well as continue the legacy that they had created. They wanted a buyer that represented their business well, and after receiving a few offers, they were able to select a buyer that was able to do this.
A recent post on the VR Business Brokers blog entitled “Can Your Business Broker Answer These 7 Questions to Your Satisfaction?” illustrates the importance of a good broker in the business selling process via seven important questions that your broker, or prospective broker, should be able to answer. They include:
- Do you have relevant experience, expertise, and licenses?
- What’s your verdict on the chances of selling my business?
- How will you value my business?
- How will you find buyers? Where will you advertise?
- How do you screen prospective buyers?
- Can I see some testimonials?
- How strong is your network of attorneys, accountants, and tax specialists?
These questions are all important ones to ask a prospective broker. You want a professional that knows what they are doing and one that has all of the skills and qualifications to get you the best possible deal in selling your business.
The recent Divestopedia article “Exits are Inevitable; Failure is Not” examines the importance of the planning process for a seller during the sale of a business. While exiting a business is usually just part of the process, doing it in a way that doesn’t cause harm to the owner or the business is vital. This is where a good exit plan can help: whether or not an owner plans to sell a business at some time in the near future, having a flexible exit plan set up will help to minimize any potential risks faced down the road.
The article explains some hypothetical scenarios where business owners failed to plan early and are subsequently unable to sell their business due to errors made throughout their ownership. The article offers a seven-step process to exit planning, which includes ideas like setting exit objectives, determining and increasing business value, and protecting the business, among others.