10 Insights from Experts to Help you Navigate Buying or Selling a Business
We reached out to business brokers, M&A advisors, certified appraisers, and SBA lenders to get their insights on buying or selling a small business in 2023. With their combined years of experience in acquisitions, exit strategy, deal structure, and financing of complex business for sale transactions, they have some valuable advice to impart.
1. Reviewing Financial Reports When Buying a Business
When it comes to buying an existing business, understanding its financial health is crucial. Explore the three vital financial reports that can guide your decision when buying a business in 3 Financial Reports You Need to Look at When Buying a Business.
2. Industry Analysis: The State of Restaurants in 2023
The restaurant industry has remained resilient over the last year. Buyers looking for a familiar business model and existing income continue to look to the industry for opportunities. Read on for detailed quarterly analysis of restaurant business sales in For the First Time in Two Years, General Business Sales Outpace Restaurant Transactions Year Over Year.
3. Working Capital in Business Sale Transactions
Determining the optimal working capital to include in a business sale and understand its impact requires a comprehensive approach. The “Financing Gap” formula offers a deep understanding of a company’s true working capital requirements, empowering buyers and sellers to make informed decisions during negotiations and acquisitions. Learn more about calculating working capital in: What is the Right Amount of Working Capital to Include in a Business Sale?
4. Using SBA Loans to Finance a Business
The Small Business Administration 7(a) loan program provides many advantages for entrepreneurs looking to buy an existing business. To learn more about what SBA 7 (a) loans cover, check out Using an SBA 7(a) Loan to Finance a Business Acquisition.
5. SBA Loan Changes
In May 2023, the Small Business Administration announced new updates to the SBA 7 (a) and 504 programs. Read SBA Loan Changes 101: How Do They Impact Buying and Selling a Business in 2023? to learn how the new updates will affect financing a business acquisition.
6. Financing Options for Buying a Business
Explore various financing options, from low down payments to all-cash offers, when considering buying a business. Read the full article for more information on financing an acquisition: Buying a Business: Financing Options Available from Low Down Payments to All-Cash Offers.
7. Negotiation Business Broker Fees
Selling a business is a multi-step process and many business owners choose to enlist the help of a business broker to navigate the intricacies of the transaction. Understand the how and if you can negotiate a reduced broker fee when selling your business in When Can You Negotiate a Reduced Broker Fee for the Sale of a Business?
8. How to Manage Emotions When Selling a Business
Selling a business is one of the biggest changes in a business owner’s life. Learn effective strategies for managing emotions during the challenging process of selling a business in How to Manage Emotions When Selling a Business.
9. How To Research Franchise Opportunities
Franchising offers many benefits for entrepreneurs, from an established business model to training and brand recognition. One of the first steps franchisees should undertake is researching opportunities. Discover valuable insights on researching franchise opportunities to make informed decisions about entering the franchise business in How To Research Franchise Opportunities.
10. When and How to Tell Employees About the Sale of a Business
When it comes to selling your business, the questions of how and when to tell employees is a big concern. Learn the best practices for informing employees about the sale of a business and ensuring a smooth transition in When and How to Tell Employees About the Sale of a Business.
If you’re considering buying or selling a business, assembling a team of advisors to help navigate the process is essential. Check out the BizBuySell Broker Directory to find a business broker who can manage the whole process—from helping you prepare for the sale to negotiating terms and closing the sale.