While business valuations are currently down across most markets, there are still plenty of opportunities for selling a business.
Archive for December, 2010
Building a business from the ground up is a rewarding experience, especially when it comes time to sell the company. But whether one plans to sell the company to a larger firm or exit by means of an initial public offering, there are certain considerations business owners should make before moving forward.
When a business owner finally decides the time is right to sell his or her company, the process of attracting a potential buyer can often turn into something of a game, in which the seller courts the buyer and a series of difficult-to-read gestures and proclamations make the deal complicated and far-off.
When negotiating an acquisition deal, entrepreneurs selling a business are faced with a number of challenges to ensuring that they receive the best possible deal. While the upfront offer may be an enticing number, many entrepreneurs insist on an "earn-out" offer as well.
The decision to sell a business may be made overnight or with the flip of a coin, but the actual process of selling a business will likely take several months – a duration that the owner should be willing and ready to endure.
Once the decision is made, a slew of other decisions and responsibilities will follow.
Selling a company may be the ultimate goal of many startups, but way before that can even be considered, cash-strapped entrepreneurs need to determine how they will fund the next stage of development.
Venture capitalists are an option after some success and profit potential have been shown, but until then the most common financing method is through commercial bank loans.
If the objective of a small business owner is to eventually sell his or her business, he or she face a number of challenges in maintaining growth to the point where the business may be enticing to a prospective buyer.
Ultimately, Read the rest of this entry »
Despite the weakened economy, high unemployment and lower business valuation rates, many small business owners are beginning to develop exit strategies for selling their company.
According to Inc. magazine, 80 percent of U.S. business owners are approaching retirement age and currently looking to sell their business.