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Increased Arizona Economic Stability Bodes Well for 2012 Business Sales
A survey of business activity nationwide shows that many sellers are taking advantage of the window of opportunity offered by improving markets. Almost one-third of business owners responded that they are considering the sale of their business.
Arizona’s Stabilizing Economy
Arizona’s economy improved modestly during 2011. Data show that recovery has begun, but the pace is painfully slow. Recent revisions to aggregate measures suggest that growth may be accelerating as 2011 comes to an end, and we expect the pace to quicken as 2012 unfolds.
First the positive signs, of which there are plenty: the jobs market is looking up, housing sales and construction have been showing recent signs of improvement, business sales and profits are rising, and even many consumers are in better shape today than they were in 2010.
Rick Kieser, Senior Advisor for RW Webb Consulting, LLC, said, “The jobs numbers are getting better.” Surveys of privately owned business sales show “the numbers are looking good.”
University of Arizona’s Economic Outlook for 2012-2013:
The good news is that all the aggregate indicators of economic activity for Arizona are improving. Personal income, wages, and employment are growing at increasingly faster rates . Measures of spending are surprisingly robust . Unemployment is declining as are bankruptcies and residential foreclosures. The Arizona economy is no longer bouncing along the bottom . Recovery is now underway .Recent revisions to Arizona personal income show much stronger growth in recent quarters than originally reported . On a year-over-year basis, personal income grew 5 .7% in the first quarter 2011 and 5 .5% in the second . Proprietors income contributed with an annualized gain of 9 .1% during the first half, followed by a 6 .8% gain for property income . Wage and salary disbursements increased by a disappointing 3 .8% . Wages per employee in the private sector jumped by 5 .7% in the first quarter, compared to a year earlier.
Preparing Your Business
1. Get a business valuation. One of the first things you should do is obtain a realistic idea of what your business is worth from an objective, outside source. A professional valuation will give you a basis for gauging buyer offers and will give you an idea of what you can expect to net from the sale. It will also tell you your business's market position, financial situation, strengths and weaknesses (which you can hopefully correct prior to putting it on the market).
Valuations can be obtained from a number of sources, ranging from local accounting firms to regional business brokers and investment banking firms. As a rule, you should make sure the company performing your valuation has access to the most current national data regarding privately held transactions in your industry. Experience in selling firms of your type is obviously helpful as well.
2. Be sure your records are up to date. You want all your hard work to pay off in the sale, so be sure you have detailed financial and company records that provide an accurate assessment of the company’s financial position.
3. Update Sales Materials. One of the first things that any potential buyer will do is to look for your company on the Internet. Make sure that your website is up to date and visually appealing. If you have introduced new products or services add them to the site. Find a good writer or editor to review your site for style, content, and typographical and grammatical errors. If you publish brochures or catalogs make sure that they are up to date, well written, and visually appealing. A small investment here will help you make a good impression on prospective buyers and on your existing and potential customers.
If your business does not have its own domain name, get one.
5. Do your housekeeping
Just as with selling any other sort of property, first impressions count. There are a number of practical steps you can take to create a good first impression to a prospective purchaser. They may seem obvious, but then again, look around, you might be surprised.
For more information visit us online at http://www.azbizforsale.net
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RW Webb Consulting specializes in the confidential sale of privately held businesses of all size. Our team of professionals will inform you of the benefits of our services and familiarize you with our company's marketing processes. Whether you are in the market to buy a business or sell a business, or if you simply want a long-term plan developed to prepare for the future- we are at your service. Many of our associates are former business owners themselves and have firsthand experience in the procedures of successful business acquisitions and mergers. For more information contact Rick Kieser at 520-668-6317 or visit us online at http://www.azbizforsale.net