According to our latest research over at www.SellabilityScore.com, the proportion of business owners getting an unsolicited offer to buy their business is up to 16 percent for the quarter ending June 30, 2014. That's a 37 percent increase over last quarter.
Big companies have cash to burn. Interest rates are at record lows and stock markets are at their highest point in history, which means virtually every acquisition deal is accretive for a big public company.
With all kinds of cheap money sloshing around in the financial system, the chances that you will receive an offer for your business is at its highest point since we started measuring the liquidity of private businesses back in 2012. What should you do--and what should you not do--if you get approached by someone who wants to buy your business? Here are three mistakes to avoid:
1. Signing a Letter Of Intent Too Early
Most acquirers will try to buy your business without competitors bidding up the price of your company (they call this a "proprietary deal"). The acquirers will ask you to sign a nonbinding Letter Of Intent (LOI), which almost always provides the acquirer 60 days of unfettered access to your books to perform their due diligence, during which time you can no longer negotiate with any other buyers.
Read more at:
3 Mistakes To Avoid When Someone Offers To Buy Your Business | Inc.com:
For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at info@buysellflbiz.com or 239.738.6227. Also, visit our Florida Business Exchange website at www.fbxbrokers.com and my personal website at www.buysellflbiz.com.
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