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Developing Realistic Asking Price for Your Business

Every business owner, regardless of size of the company, must execute a plan for divesting his/her interest in the business – often called an exit strategy.  The business owners can give it to his family through a will, sell to his/her employees or to an outside party, or take the company public.  For most business owners, based upon the size of their company and lifestyle considerations, selling their company is the best option.

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Importance of Reasonableness When Selling Your Business

I read an interesting article about one of the challenging aspects of being a business broker.  While successful business are often experts, or at least very knowledgeable about their business and the industry in which they operate, this knowledge often gives them a false sense of their expertise in other areas as well. This leads them, after a few conversations with their peers, and the reading of a few articles or books, to reach a hard-coated conclusion about the price and terms they expect to receive for the sale of their business.

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Understanding Reality When Selling Your Business

I was the broker for the owner of a company in a declining industry. Like many other businesses in this industry, this company was experiencing declining revenues – caused by the decline in the overall economy and the long-term trend of this industry.

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Selling My Business

Preparation to sell (or exit) your company should be considered as an integral part of your business plan.  Exit planners often advise business owners to consider a strategic plan for exiting before starting or even acquiring a business.  This may seem premature, but proper transaction execution for the sale of a company takes strategic orchestration.  Your financial advisory team should include a Business Broker or M&A Advisor, an Estate Attorney, Transaction Attorney, and a Tax Accountant.  As you prepare to sell your company, you should consider the many challenges involved.

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Valuing Your Business

I talk to business owners all the time who ask me: “What’s the best method for valuing my company?” Valuing your business is one of the most critical components of businesses success – for two reasons:  (1) you should always operate your business with an eye toward your exit strategy. 

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Appraising Your Business

Appraising your business can be a very valuable process.  Do you know what your company is worth right now?  Do you know what buyers are looking for in a business?  Do you know what needs to be done to increase the value of your business?

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