Jeff Slaton - Selling A Business In A Down Economy Video

Jeff Slaton - Selling A Business In A Down Economy Video



http://www.networthbb.com/NetWorthSellingProcess Jeff Slaton here to talk about Strategies for Business Transfers in a Down Economy. Addressing the inevitable exit from your business can be chilling for most business owners. Selling the business that you have spent years nurturing and feeding to a third party can be an emotional and trying experience. It is estimated that less than 15% of business owners have developed an exit plan from their business, despite the reality that it is a certain outcome for every business owner. For most owners of closely held companies their business assets account for the majority of their net worth, yet few business owners have a quantifiable value for their business or an understanding of what drives value. http://www.networthbb.com/NetWorthSellingProcess I have recently observed that some business owners are standing on the sidelines waiting for better economic times to plan for or exit their businesses. They seem to believe that better economic times will lead to a higher value for the business when sold. This strategy is worth consideration, but for many business owners it leads to unnecessary delays in their lifestyle plans without any measurable increase in the value of their business at a later time. In fact, for many, the business value declines during this delay because the business owner has lost interest or energy to keep the business growing and competitive. In the end the business owner can lose several years off of their retirement experience and fail to add any additional value to their net worth. We have been experiencing variable economic conditions in the last few fiscal quarters which seem certain to continue for the immediate future. Selling your business in what would be considered a weak economic time, however, can produce outstanding results based upon two realities: #1 The value of closely held companies is most often determined by internal attributes of the business and less from external economic factors. #2. QUALITY sells in any economic market. Any "down market" is categorized by an increase of inventory (in this case, businesses for sale) and a decrease in the number of buyers looking to buy the inventory. Economics 101 and the theory of supply and demand has taught us this situation creates a buyer's market characterized by lower prices, longer lead times to sell, and terms more favorable to buyers. In the case of the business for sale market place that is true for all the businesses at the bottom of the value and quality range. The businesses that are properly positioned in the higher value and quality range retain their value in any market conditions. The correct strategy for many business owners to enhance their wealth upon exiting their business is to improve value and not wait on the side lines for better economic times. In my consulting work with small businesses I find that there are some elements that are common to every business that enhance value when marketing a business. Some are quite easy to implement and amount to the "low lying fruit" that can be picked with little effort or expense. Please invest a few minutes and go to NETWORTH BLOG to review my 6 recommendations to increase value and reduce time on market. http://www.networthbb.com/NetWorthSellingProcess In summary, don't stand on the sidelines in a down market believing that you will achieve higher values later. If now is your time to move on with the next phase of your life, make a plan, assemble a team and focus on making your business for sale a QUALITY offering that will sell in any market condition. Contact us at NetWorth Business Advisory for an objective valuation of your business and goals. Jeff Slaton 24-Hour Reaction Line 612.419.2905 Broker@NetWorthBB.com 3033 Excelsior Blvd., Suite 10 Minneapolis, MN 55416