• Even if a business sale is not within a small business owner’s foreseeable future, it is still of great importance to create an exit plan. With a strong exit strategy in place, the business owner will be able to more seamlessly sell the company to a new owner when the time comes. It is also beneficial in the event that something unexpected occurs. An exit strategy assists in creating heightened business value when these tactics are implemented. Should an attempt at selling the business be unsuccessful, not only will there be a huge loss of profits, but loss of personal wealth as well, since most small business owners have a majority of their money tied up in their business. The following guide illustrates how to create an exit plan that will prepare for a business sale as well as improve the overall health of the company. 

  • Buying a business has its benefits because the business is already well-established and includes a full inventory and a consistent cash flow.

    While it may be more difficult for business buyers to collect bank loans than in previous years, that does not indicate that a large sum of money out of pocket is required to buy a business. In fact, a handful of buyers have bought a business without using any cash of their own. The following guide discusses other routes of funding for a small business acquisition.

  • The due diligence process is used in M&A as a rigorous analysis of all aspects of the prospective business that allows the buyer to see the full scope of a company that they plan to purchase. The main purpose of due diligence is to mitigate risk for the buyer by qualifying it for financial performance, analysis of client and vendor relationships, test proprietary and patented products, and processes, etc. Due diligence may take several months due to the depth in which due diligence analyzes the company in question. Poor results in due diligence is perhaps the number one reason that many M&A deals fail. Due to the complexity involved in M&A transactions, it is essential that the company’s records will satisfy the most critical review. The following outline includes steps a business owner should take when preparing for due dilligence.