Every business will eventually change ownership and the decision to sell a company can either be viewed by the owner as the most agonizing event or the most liberating. Some owners are ill prepared for a business transition and are caught off guard by deteriorating health, unanticipated financial calamities, divorce, or personal stress. These owners are forced to sell without proper planning and often receive less than optimal remuneration for their company. Other owners recognize that in order to maximize the business value, similar strategic planning done during the years the company was being built is also required prior to selling the enterprise.The goal of this article is not a crystal ball analysis as to why selling a business now is the perfect time; the article’s intent is to review the factors that can influence the timing of this decision and the necessity to prepare well in advance for the eventual business transition or sale. Life’s circumstances are ever changing and proper succession planning is the single most important way for an owner to take control of the terms and conditions of exiting a business. There are a variety of reasons for business control transfer and those who are proactive in an exit plan implementation are often able to realize greater opportunities to maximize the businesses value, minimize tax liabilities, retain key employees, and mitigate emotionally charged family issues.Determining the best “time” to sell a privately held business will depend upon a number of factors, both internal and external. Ultimately, the timing decision is influenced by the reason(s) behind the sale, especially given the fact that not all business sales are pre-planned. While value maximization is historically near the top of the wish list when a sale is contemplated, it is often balanced with the owner’s personal goals and lifestyle needs. Some of the most common reasons for a business sale or transition include:• Quality of Life/Retirement – Owning a privately held business consumes a considerable amount of time with corresponding opportunity costs. Most owners reach a point where they are interested in other life pursuits, whether that be spending time with a spouse/children/grandchildren, engaging a personal hobby, or taking the time to travel the globe.
• Diversification – A privately held business typically represents a significant component of family wealth and the owner will be keenly interested to diversify this asset into other investments.
• Burn Out – Many long term business owners lose the “fire in the belly” that they once had when the company was founded. As a result, highly successful and functional businesses can show lower sales and profitability as a result of reduced ownership commitment and drive. Most experts recommend that the proper time to sell a business is before this condition poses a threat to the business operations and/or value.
• Illness – Encountering a personal or family member illness is one of several “unexpected” reasons that can cause a business sale to be pursued.
• Divorce – The break-up of a marriage has been responsible for the sale of many family run enterprises.Company performance, tax implications, buyer activity and the economy are all contributing factors involved in creating “perfect timing” for the sale of a business. Timing a sale at the peak can be very difficult due to the unpredictable variability of the many internal and external factors. Sales contracts are won and lost, new competitors come into the market, technology becomes obsolete, and business expenses can skyrocket (e.g. health care costs)…any of these events can affect future sales and earnings and thereby have a material impact on the company valuation.Company Performance
The profitability and cash flow of a business is one of the key drivers in determining the company’s value and marketability. While buyers are looking for companies that have potential to grow and generate reliable earnings in the future, the valuation in the majority of cases will be tied to past performance and achievements. A business with a solid earnings history that is equipped with stable personnel/management in an attractive industry will be highly marketable and should capture a fair price regardless of the economy. Other business specific factors that can influence valuations and play a role in the timing decision include:• Competition – How has the business performed during the recent economic downturn relative to its competitors?
• Concentration of Customers – What percentage of revenue is generated by the top 3-5 customers?
• Business/Industry Trends – What have been the trends for the trailing 3 years – revenue, COGS, expenses, and net income? What factors will positively or negatively affect future earnings?
• Areas for Growth – What new products, new markets, or economic factors will enable top & bottom line growth?Tax Implications (Current vs. Future)
Business owners should be well versed in the tax costs (income, capital gains, estate, personal property, and payroll) involved in the sale of their business and how the net after tax dollars will be affected as these taxes are increased. Understanding the effect of pending tax increases, enables business owners to make informed decisions as it relates to maximizing the net after tax dollars through the intelligent structuring and timing of the business sale transaction.Supply/Demand
Understanding the conditions that create increased buyer demand can often help formulate timing decisions.
• Cost of Capital / Interest Rates – 3rd party financing is responsible for funding a majority of privately held business sales. The level of interest rates has a direct impact on the cost of capital, and will create greater value to the targeted business when rates are low. A tightened credit market can reduce the pool of qualified buyers as it typically increases the credit and collateralized asset requirements necessary for loan approvals.
• Quantity of Buyers – A poor economy (while detrimental to many companies earnings) often increases the number of available business buyers, as displaced corporate executives seek to leverage their skills and retirement savings to acquire a company as a future source of income and livelihood.
• Competitive Companies for Sale – The number of companies for sale in a given industry or geography can impact the pricing that these companies capture in the marketplace. The much discussed retiring baby boomer phenomenon is predicted to put downward pricing pressure on businesses, as the number of companies becoming available for sale increases.It is important for business owners to continually evaluate their exit plan options throughout all stages of their business. The subprime lending crisis and financial market turmoil over the last several years has caused more and more business owners to reassess their life goals and retirement plans and compare those to the opportunity cost of managing their current business. For some business owners, a near term exit is not financially possible. With the help of a competent business intermediary they can develop a transaction that is structured to enable them to stay involved with their business in some capacity, post sale. Obtaining professional assistance to determine the current market value of the business and establishing the framework for an exit strategy provides that ‘windows of opportunities’ are not missed. Thus the transaction value of a going concern business can be maximized while the company is still relevant, profitable, and possesses viable growth prospects for the future.The question of “when” is the right time to sell the company is probably one of the most frequently asked questions by a business owner. In many cases, the best time to sell is when an owner does not have to. Few owners contemplate selling the company when the business is rapidly growing and the company is clicking on all cylinders. When times are lean and earnings have pulled back, owners also become hesitant to sell based on the feeling that the specific dollar value they have in mind for their enterprise may not be realistic in the current market. In both instances, the “buying power” generated from the sale proceeds could be nearly equivalent given the efficiency of the financial markets. During a strong economy a higher transaction value may be realized but the value of comparable assets (e.g. real estate) will also be at a high level. Conversely, a business sold in a more sluggish economy may net fewer dollars for the seller but could provide a higher level of buying power based upon the value of comparable assets in which the proceeds are likely to be re-invested.
When to Sell Your Business
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Viral Marketing Techniques – Gateway to Success
Every kind of vibrant internet marketing technique is intensively had a look at by desperate or aggressive Web online marketers or striving online business owners who prefer success in their corporate endeavors. They acknowledge the value of buzz and buzz in the market to promote their corporate brand and offerings; thus, they constantly look for the very best type of marketing technique to be carried out in a well prepared marketing project to enjoy the very best outcomes.Viral MarketingAmong the most effective internet marketing techniques these days is viral marketing. This marketing method empowers online marketers and entrepreneur to spread out and promote their company brand and offerings like wildfire or transmittable illness. The ideal platform utilized would surge or speed up development in promoting the brand or company to unrestricted volumes of prospective leads for business.Viral marketing methods are formed through word-of-mouth interactions and internet marketing while leveraging on different kinds of media online. Viral interaction is finest turned on through social networks to enhance web traffic to a site.When sharing and moving marketing details, Audio, video and text medium might be made use of for reliable viral interaction throughout the Web.Execution of Viral MarketingThe simplicity and efficiency of viral marketing trigger online business owners and numerous online marketers to obtain begun on its execution as quickly as they perhaps could. The yield in high natural traffic is extremely enticing to business with a continuous circulation of great traffic to the site.Little technical proficiency is needed with viral marketing. Excellent material is a need in turning on viral marketing, although the effort is less. A high effect needs to be turned on through the premier material that drifts easily throughout the Web to impress numerous web customers all at once to set off the best call-to-action.Breaking or impressive news contents are important to an effective execution of viral marketing as the cause and effect might never ever be actually established or managed even by the most skilled of online marketers or financial industry specialists. The success of viral marketing is mostly based on the psychological effect the marketing material carries readers to force the forwarding or activate or sharing of material read. The impactful material might make up helpful, home entertainment or academic tags to draw in possible company leads.A few of the very best viral marketing strategies consist of videos, social networks, newsletter and material marketing.Video Marketing for ViralThe videos are well liked by web customers old or young for their amusing and interesting values. Visual company promotions are much easier to draw in and record possible leads’ interest and interest. Audiences are quicker mesmerized through the well prepared and carried out discussion of contents in a funny or informing way that showcases professionalism or enjoyable.Interest to the brand and corporate is stirred with a disposition by customers to support the brand or online marketer. The crisp however brief conveyance of the company message tends to set off a chain response amongst web customers who feel obliged to share with others in their circles of contact to benefit from the company offer.Social Network for ViralWith the progressive innovations establishing, social networks is quick ending up being popular for promoting corporate goals to satisfy corporate objectives and profits. Popular social networks like Facebook, Twitter and Instagram are winning countless users who ply their platform everyday sharing and forwarding intriguing material.Web customers are the very best source of internet marketing on the Web with their large and strong connections. A click of the button is adequate to set off a viral blood circulation of the brand or providing that benefits customers. Amusing info is frequently the secret to effective viral marketing on the social networks where one web user feels obliged to ‘make understood’ the condition or truth from the details got.YouTube shows to be another vibrant social networks platform that is extensively made use of to produce a viral result on video contents. Businesses have actually effectively enjoyed their promotion videos going viral on YouTube.Content Marketing for ViralFascinating and great contents are simple to distribute on the Web. Innovative contents on exciting and intriguing subjects with white hat SEO would win more readers and prospective leads for business easily.Excellent contents are constantly demanded by web customers to be upgraded and satisfied for life and work. This is quickly acquired from high quality short articles on numerous subjects and styles to woo targeted readerships that would enhance the brand and company. Online marketers or company entrepreneurs who are proficient or knowledgeable in producing fascinating contents with SEO functions would stand to win market integrity and acknowledgment that would increase their company brand and sales volumes.Even if these do not have excellent writing abilities, the market provides expert authors who are able to record the essence of the corporate to increase viral marketing. Exciting contents would be easily shared and forwarded on the Web through fast and simple modes today with progressive innovations.Newsletters for ViralNewsletters are outstanding in helping business in keeping touch with possible leads and clients. Routine updates of the brand and corporate aid online marketers and company owner to remain gotten in touch with their possible crowd in developing and drawing sales client commitment.E-Newsletters are even much easier to go viral on corporate brands and provides as web consumers might forward the current info with an easy click of the button. Consumers and prospective company leads get the most recent info to delight in higher take advantage of the brand and company.ConclusionNumerous vibrant marketing techniques are possible in turning on viral marketing. It depends on the online marketer or company owner to determine and choose the very best of viral marketing methods based upon their corporate brand and goals.Some viral marketing strategies might be simple to turn on while others need some marketing devices and elements. When targeted specific niche markets are determined ahead of time, the best marketing method might prompt a viral result on the proposed promo.
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How Social Media Allies and Upsides Your SEO Efforts?
SMM and Search Engine Optimization are usually given a separate space in the digital marketing arena.
And, quite reasonably, they are the two most decisive factors in the online marketing sphere.
But what we fail to understand is why many businesses do not acknowledge social media marketing as one of SEO’s most influential allies.
Do we intend to say that social media directly encourages your Search engine rankings?
The simple answer could be NO!
You must recognize that social metrics like Facebook likes and Twitter followers indicate social profile authority but have no hand in directly circumscribing the search engine rankings.
Surely, our straightforward answer is confusing. However, we completely believe that SEO and smo are powerful collaborators whose association must be leveraged for digital marketing success.
Let’s dig deeper and express how SMM can merit and warrant your SEO strategy.
The Relationship Between Social Metrics & SEO
Let’s assume that there might have been experiments conducted in the past that determine the use of social-media metrics such as social mentions and engagement level for search engine rankings.
But due to the unpredictable and unstable nature of smo and the weak signals generated, professionals might have dropped the attempts.
This was well elaborated by Matt Cutts back in 2014 in a Webmasters video. He was the Head of Google’s Webspam Team back then, and he revealed that social media provided incomplete signals.
Also, search engine algorithms can’t ascertain the reliability and authority of the smo posts and the profile.
Nevertheless, is there an Indirect way that social media influences search engine rankings?
And, this was embellished in the Cutt’s video itself.
He said that Google treats all social media websites like any other website on the Internet, which means that the same rules apply to Facebook, Twitter and so on as it applies to other websites.
Benefits of Social Media for Business
A Linkable Opportunity
As most social media consists of links to other websites, site owners and content creators can use it to promote their content.
You can employ a particular mixture of organic and paid promotions strategy to maximize your audience base.
Here’s how this happens-
As you use social media, there might have been countless times that some articles impacted you.
The impression an article made is evident in the things you share and communicate on social media. You might often use the information from the article in your other works, giving the source article a reference.
Understand that people cannot relate to something unless they know about it. Social media gives the perfect opportunity to content creators to prompt the audience and share link-worthy content.
You might well concede that SMM has given attention to many websites and individuals who were not known before. Creating Brand Mentions
Now, suppose someone or something (brand, product, service, individual, business, etc.) that has not yet been identified by Google suddenly notices many remarks online. In that case, it will influence Google to categorize them as an “entity”.
These are some unique circumstances that can boost your search engine rankings. This is bound to the context you are being mentioned or how people are talking about you online.
Understand that you are not adjudicated for how high you rank for a thing but what you entail as an entity.
So your website might not be getting a mention for a specific thing right now, but seeing the number of people who put trust in you, they can well start recognizing your business for that particular piece.
This is called the power of positive mentions.
Nevertheless, you need to make sure that positive mentions are not just on social media but on all public forums.
You can spring your brand marketing with your true audience base and inspire positive reinforcement and communication on social media.
Social Media For Searches
You cannot miss the fact that people use social media to search for a particular product or brand, and your audience base is just not limited to Google or Bing.
As you operate Twitter, you will realize that the social media channel with its trends, hashtags, insights and other tools give you a perfect opportunity to collude with the potential customers, making your content visible to the users.
You will find similar responses to Pinterest and Instagram.
Also, if anyone wants to know more about your company, he/she will likely ascertain your presence on Facebook, Instagram, Twitter channels- do a quick search and decide upon if he/she wants to deal with your business or not.
In 2016 Mark Zuckerberg had mentioned that “Now people are doing more than 2 billion searches a day between looking up people, businesses, and other things they care about.”- source Techcrunch.
Facebook had earlier retreated on a semantic graph search engine and launched a true keyword search, which landed in more search queries for media channel.
Twitter, since its onset, has been the leading destination for the population to flock for searches, especially in the event of big global news. Full post search appeared to have worked for Facebook and have expedited query volume.
Changing The Idea Of SEO
We have reached the phase where SEO is not just centered till Google optimization. We need to realize that search engine optimization is extending and converging on smo.
Also, if Google has been unclear about its stand, Bing, on the other hand, has been quite positive in including social metrics in its search engine algorithms.
You may well agree that the audience that reaches the company website, lurking through digital media channels, has already interacted with the company in a very pragmatic sense.
Also, digital media gives users the capability to engage more powerfully and compellingly. Hence, it will be only effective to broaden your social, media capacities and elicit brand awareness and growth.