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From the category archives: Certified Business Brokers News

Looking for tips and common questions that sellers should be prepared to answer before talking to a buyer.

The State of the Business-For-Sale Market 2018

High demand and low supply continue to make this a favorable seller’s market as reported in the Q3 2018 Market Pulse Survey Report.  Buyers are active and competing against each other for quality deals, meaning sellers have choices when selecting their preferred buyer. This kind of leverage contributes to strong valuations and advantageous deal structures with more cash at close.  

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Why Are Business Owners Selling Their Companies?

Recent studies indicate that retirement continues to lead as the number one reason for selling a company. Because a business often represents up to 70% percent of the owner’s overall wealth, it is critical that they take a proactive approach when preparing for their exit. Owners who succeed in harvesting years of hard work will not only financially benefit them on a personal level, but they will have more wealth to pass on to their families.


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Your Complete Guide to a Successful Business Exit Plan

Perhaps you’re planning to retire, or perhaps you’ve decided to pursue a different type of business venture. You realize this is the perfect time to sell your business, and you want to ensure you’ll receive a profit that reflects the time and dedication you’ve put into your business. A strategic and perfectly executed business exit plan is of paramount importance, and it’s the cornerstone of intelligent and responsible entrepreneurship. 

Because so many don’t have a business exit plan in place, they may often receive less for their company than it is worth, and they can easily be overwhelmed by the extensive details involved in transferring or selling a business. Being proactive means you can be assured a smooth transition, so remember to implement these important aspects of an exit plan...

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National Survey: M&A Advisors and Brokers Say 2018 Is The Best Year to Sell a Business in Last 5 Years

Optimism in the M&A market is at an all-time high according to findings from the Q2 2018 Market Pulse Report published by the International Business Brokers Association (IBBA)M&A Source and the Pepperdine Private Capital Market Project. 21% of business advisors surveyed say 2018 is the best year they’ve ever seen for business owners to sell their businesses. Another 37% say it’s the best time in five years, and 17% say it’s the best in the last 10 years.

Consistent with general market optimism advisors believe seller advantage is growing, with year-over- year seller-market sentiment increases in all market sectors. In the Main Street market, for businesses valued at less than $500,000, seller market sentiment is at the highest it’s been since the survey started in 2013.

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Pricing A Business Too High

It is human nature for business owners who are putting their companies up for sale would want to go to market with a higher price than what the valuation suggested, hoping buyers will still look at the opportunity.

Unfortunately, though, the right buyers are savvy, knowledgeable, and serious about their acquisition targets. These buyers know the marketplace and won't even look at a company if they think the price is out of line with economic realities.


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Training New Owners After Selling a Business

When you sell your business, it's common practice to provide training for the new owner.  But what does new owner training involve? What are your responsibilities? And how long will you will be "on the hook" after the deal has closed?

The whole idea of training the new owner may seem alien to the Seller.  After all, why would someone purchase a business they aren't capable of operating?  But in reality, people with relevant backgrounds, can and do, with limited training and experience regularly purchase small businesses. They probably have experience in either the industry or business management aspects, but maybe not both. Seller training gives them a crash course in their area of weakness and prepares them for the real world challenges of running the company on their own.

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Avoid These Common Sell-Side M&A Mistakes

Selling a company is no small feat. It can be time-consuming and stressful. It demands meticulous planning, competent advice, and a keen understanding of the dynamics of negotiation and deal-making. CEOs and companies inexperienced in the M&A process commonly make mistakes that can undermine a deal, resulting in a less favorable price—or even kill the deal outright.   These are the most common mistakes. Avoid them at all costs if you want to get the most out of your deal:  Having unrealistic expectations about the time and effort the deal will demand of you. Deal-making takes time and expertise.  Not creating a competitive bidding process. You must make your business appealing to multiple buyers to drive up the price.  Poorly-crafted or nonexistent NDAs. Confidentiality is money when it comes to deal-making.  An incomplete or nonexistent online data room. Buyers need ready access to key information to review for due diligence. If they can& ...

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Could 2018 Be the Right Time to Sell Your Business?

Research shows optimism among small and medium business owners in Houston reaching an all-time high. This optimism can translate into results. Year 2018 might be the ideal time to sell your business in Houston.

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Selling Your Houston Business? Here are the Key Value Drivers to Focus On

Years 2018 and 2019 may be ideal times to sell your Houston business. Values have never been higher, particularly for well-run companies. We’re also beginning an upswing in economic cycles.

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Strike While The Iron Is Hot: Now Is A Great Time To Sell A Business

There are many factors that determine best timing for selling a small business -- the financial condition of the company, valuation, growth cycle, profit history, and the current market. 

Usually the best time to obtain the highest price occurs when sales and earnings are good and trending upward. A solid earnings trend will enable a buyer to pay a higher price and still meet his return of investment criteria. A history of good performance also gives the buyer confidence in projected future earnings. 

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