Sell Now or Later?

By Ralana D Abraham, Business Broker
Sunbelt Business Advisors of Indiana

If you are considering holding off on selling your business you may want to reconsider.

Recently I have read several great articles and sat in on presentations expounding on tax implications, regulatory implications and the availability of buyers… and am convinced that now more than ever sellers need to realize what the current economic and political environment really means for them and their future… and why selling now truly is a better option.

There are several very good reasons to sell now… among them the looming tax changes for higher income tax-payers, increased regulation for small businesses making the costs of doing business higher, and the increased incentive for buyers to buy in this market.

To read the full article and learn more about the reasons to sell now... click here.

Benefits of Meeting with a Business Broker in person...

Whether you are ready to list now or are considering in the next fews years, as you move forward with the sale of your business, you will want to consider all of your options. Speaking to a qualified business broker is one of the first steps you are going to want to take. You will be better prepared to move forward whether you list with the broker or not. Arming yourself with all the tools available to you is always a good idea. But, do not think a quick conversation over the phone is going to give you a full picture of the advantages that a business broker can offer to the situation.

A qualified business broker can render an initial opinion of value, and recommend courses of action to market your business. In order to do so, you will want them to have a full picture of your business. An on-site meeting can give your potential broker a better understanding of your business. You want them to see it as more than just the numbers. Your business has a flavor, and should you decide to list, the better understanding the broker has the more likely they are to concentrate on that right-fit buyer, the one most likely to see the value and succeed in your business...

Click here to read my full  article, and respond with a comment. Would love to hear what you have to say...

Ralana D. Abraham
Business Broker, Dir. of Marketing
Sunbelt Indiana

Exit Planning:Prepare for an out while you're still in

Running a successful business is time consuming, leaving you little time to plan what may seem like distant succession issues. It's important, however, to outline an exit plan and make succession decisions as early as possible. Evaluating and grooming possible successors or preparing for an outside sale can take years. And it's never too early to make retirement and estate plans.

Take stock
Before determining where you want to be when you're ready to retire, assess where you and your business are financially today. Prepare a detailed financial analysis of your business with the help of a valuation professional. This expert will review historical data to determine its current value.

Click here to read the full article by the staff at SunbeltMergers.com.

Why Your Company Needs a Physical

Complements of Business Brokerage Press

Many executives of both public and private firms get a physical check-up once a year. Many of those same executives think nothing of having their investments checked over at least once a year - probably more often. Yet, these same prudent executives never considering giving their company an annual physical, unless they are required to by company rules, ESOP regulations or some other necessary reason.

A leading CPA firm conducted a survey that revealed:

• 65% of business owners do not know what their company is worth;


• 75% of their net worth is tied up in their business; and


• 85% have no exit strategy

They are many obvious reasons why a business owner should get a valuation of his or her company every year such as partnership issues, estate planning or a divorce; buy/sell agreements; banking relationships; etc.

No matter what the reason, the importance of getting a valuation cannot be over-emphasized...

To learn more... click here to read the full article.

Staffing Decisions - 2 Options if you are going to sell

One area that has the potential to affect the value of your business is the staffing of your business. If you are thinking about selling, you may want to consider two different options.

1. Outsourcing

Many services, especially in today's environmen of the self-employed, can be outsourced. Replacing workers is not pleasant and should only be done if substantial savings can be realized, but outsourcing is worth investigating.

When evaluating the potential savings, you will want to compare the total costs related to the employee (salary, benefits, bonuses, etc.) to the total costs related to outsourcing. You will also want to consider how the change could affect customer service and the morale and productivity of the other employees.

2. Removing Negativity

Now may be the time to get rid of any disgruntled employees. Negative employees hurt a business in several ways. Their attitudes can create a sour environment for their co-workers; their criticisms and complaints can rub off on their coworkers; and their demeanor can leave a negative impression on the customers of the business.

Happy and contented employees make for a profitable business - and it is evident to anyone looking at the business.

How to Hold on to Key Employees (Article 3, Exit planning series)

Courtesy of Business Brokerage Press
During a company merger, the devil is in the details. Identifying key employees and employment issues early on can facilitate a smooth deal. And a communication plan can help prevent, for example, top-producing salespeople from defecting to competitors, decimating the company's customer base, and affecting its value.

It's important to offer employees incentives to stay, but you also need to anticipate potential legal issues. Plan now to put in place protections to prevent employees from disrupting your deal, both before and after its closes.

to read the full article... click here.

Check us out Monday for Article 4 in our Exit Planning Series when we address the subject of Inventory.

Insurance: A Dull Subject Unless You Need It

Most business owners faithfully renew their business insurance policies every year, but how many actually review the policies on a regular basis? Unfortunately, too many business owners have never read the policies. This means, among other things, that they don't know whether the policies are continuing to adequately cover the changing needs of the business. For example, is the new expensive computer system covered? Are all the weather contingencies covered? Is the employee health coverage up to date with today's medical costs? Does you company have business interruption insurance? If so, when was the last time you reviewed it?

Now might be a good time to review all of your insurance policies...
especially if you are considering the sale of the business now or in the future...

To read the full article... click here.

Exit Planning - Prepare for an out while you're still in

Running a succesful business is time consuming, leaving you little time to plan what may seem like distant succession issues. It's important, however, to outline an exit plan and make succession decisions as early as possible. Evaluating and grooming possible successors or preparing for an outside sale can take years. And it's never too early to make retirement and estate plans.

To read the full article from Sunbeltmergers.com... click here.

Exit planning: Prepare for an out while you’re still in

SunbeltMergers.com

Running a successful business is time consuming, leaving you little time to plan what may seem like distant succession issues. It’s important, however, to outline an exit plan and make succession decisions as early as possible. Evaluating and grooming possible successors or preparing for an outside sale can take years. And it’s never too early to make retirement and estate plans.

To read the full article... click here.

When is the right time to exit?

By Pete Sokoloff
Security Systems News

The number one question I get asked in speaking with company owners is, "When is the right time to sell my business?"

There is a great deal of emotion that goes into selling a business. In terms of stress, it has been rated right up there with divorce and the death of a loved one. Though there are numerous logical reasons to sell or not sell a business, at the end of the day all decisions about making an exit are most heavily influenced by the emotions of the owners. This commentary will discuss not only the elements that should be considered, but what constitutes the right and the wrong mindset.

The logic of the right time to sell any company is indisputable. It is when multiple buyers are interested and the highest price can be commanded. This "perfect storm" occurs when the following elements are in place: 1. There is a history of financial improvement in your business over the last few years, both in revenues and earnings. 2. There is strong evidence that revenues and earnings will continue to increase in future years. 3. Market conditions are such that the investment community believes there is good upside ahead for the industry segment your company serves.

When these conditions are met, the owners of the business are in the enviable position of being able to find many interested buyers and a premium price for their company. So, why would a potential seller disregard this logic?

To read the full article … click here.