Get Rid of Excess Inventory When Selling Your Business 
When selling a business, maximizing value is of primary importance to the business owner. One element that can weigh down business value is excess inventory and its carrying cost.
Excess inventory can decimate profitability and cash flow in a hurry. Not only does excess inventory tie up a lot of cash, but there are day-in and day-out costs associated with that inventory as well.
There are other issues concerning inventory that can derail the successful sale of a business as well. Be sure to discuss any inventory issues you may have with your business broker prior to marketing the business for sale.
Carrying costs affect the profitability of the business and include the following:
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Buying a Business? Make it a Good Investment
 Future profit potential, and how much you can impact that future, is the most important intel you can have when purchasing a business. Future growth will ultimately be the measurement of the merits of the investment and is key to your achieving a good return .Successful acquisitions are all about generating a premium on the investment. The major "determinator" in considering an acquisition should be how you can improve the business. Probing for underlying growth opportunities that are ripe for exploitation will help achieve that goal.
Some factors to consider in gauging the company's future under your ownership: Read Entire Article |
Creative Financing for Buyers
The evaporation of small business capital markets and other economic factors have made creative financing the norm for today's business buyer. During these turbulent times there are a number of creative financing options that you can consider.
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Ask the experts section.
Q: A major competitor made an unsolicited offer to acquire my small business. What should my next step be?
A: While the offer may sound great, the real question is whether or not it is an offer that truly reflects that value of the business you have built.
So, in order to make an informed decision, the first step is to seek an independent valuation from a firm who knows the marketplace.
Secondly, you need to educate yourself about what drives value and what motivates buyers.
The fact is that competitors usually pay the
least for a business. There are other types
of buyers that would probably pay more.
Each category of buyer has distinctive characteristics and motives for making an acquisition. The price each is willing to pay is directly proportional to their motive.
Should a valuation determine that your competitor's offer is too low, then you should let the marketplace compete for your business in order to achieve the best possible deal. |
