Around the Web: A Week in Summary
An article published recently in The Business Journals entitled “3 Reasons 2016 Was a Good Year to Sell a Business, and What it Means for 2017” explains why so many small business transactions occurred in 2016 and how the trend will play out this year. There were a record 7,842 closed small business transactions in 2016, which represented an increase over 2015 and a 4.2% increase over the same period in 2014. This record number of business sales can be attributed to:
- Better business financials over 2015
- A shorter time on the market
- More overall business listings, especially in Q4 2016
The good news about all of this: experts expect this trend to continue into and throughout 2017. Along with the continuation of positive 2016 trends, new laws and regulations are being implemented this year that will help drive more people into the marketplace.
A recent post on the Transworld Business Advisors blog entitled “5 Questions to Ask Yourself Before Buying a Business” outlines important questions and decisions that need to be made before deciding to buy a business. They are as follows:
- How do I decide which business to buy?
- What do I look for in a business that I would like to buy?
- How do I know that the information the owner is providing me about the business is true?
- How much money do I need to purchase a business?
- What skills will I have to hire?
Knowing the answers to these questions is vital to the business transaction process. While some seem obvious, others will make you think deeply about what you goals truly are and will help to give you direction and guidance that you otherwise may not have had.
A recent article in The Business Journals “3 Questions to Consider When Looking at Mergers and Acquisitions” outlines what a prospective seller should consider regarding mergers and acquisitions as a means to exit their business. The current state of the M&A market makes this option very lucrative, with record transaction numbers and valuations. But no matter the state of the market, knowing whether or not this is the best option is important. When considering a merger or acquisition, you should ask yourself:
- Does M&A align with your company’s strategic plan and vision?
- Have you conducted adequate due diligence?
- Do you have a post-deal integration plan?
While time and patience are very important during this process, it is also very important to understand everything about the process, why you’re undergoing it, and what it means for your business. A merger or acquisition could mean very good things for your company if you are well prepared and know what questions to ask.