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Monthly Archives

February 2024

Preparing Your Business For Sale

Preparing your business for Sale, represented by image of businessperson working on laptop
When it comes to preparing your business for sale, the journey involves much more than just putting a price tag on it; it requires meticulous preparation and strategic positioning to ensure that your business is an attractive asset to potential buyers. Beyond knowing how to sell your business, at the core of preparing is answering the fundamental question: Does the business run independent of your involvement? Can the business operate without you Many entrepreneurs and business owners don’t realize the difference between owning a business and owning a job. If your presence is critical for the daily operations, then you're essentially self-employed; you own a job. This dependency often scales inversely with the business's size. When you are the rainmaker, leader, manager, and CEO all wrapped into one, what you're selling is limited to tangible assets, rather than a sustainable enterprise. A business that can't operate in your absence is…
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Business Valuation and Common Misconceptions and Associated Risks

Women holding iPad, reflecting a business valuation
Maneuvering through the intricate landscape of business valuation can be as challenging as it is critical for owners looking to sell their business - their life's work. The valuation process is not merely an academic exercise but a practical one that can significantly influence the final sale price of a business.  It's essential for business owners to understand that an early, independent valuation serves a dual purpose: it provides a snapshot of the current worth and highlights potential value increases through operational improvements. This article delves into the complexities of business valuation, exploring common misconceptions and strategic considerations to ensure that entrepreneurs maximize their wealth when the time comes to sell. Understanding Different Business Valuation Methods 1. Market Comparison Valuation Approach Also known as the Market Approach, the Market Comparison Valuation Approach, is a method for valuing a business by comparing it to similar businesses that have been sold recently.…
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