Things to UnderstandThe Process of Selling a Business
There are many reasons why you might want to sell your business, including retirement, relocation, health issues and personal situations. However, the number one reason owners sell their business is “burn-out”. This includes many owners who have been very successful and have built a great business, but are now ready to sell and move on to a new challenge. Or it may just be time to cash in on hard work and take some time off. No matter your reason for selling a business, we can help you to effectively value, package, market, and ultimately sell your business.
There are many reasons to use a business broker to sell your business. The most important reasons include:
- Helps you to get the right price and the right terms for your business.
- Allows you to focus on running your business – making it even more attractive to potential buyers.
- Assures confidentiality of business information.
- You only deal with qualified business buyers who have a good understanding of your business.
- Expert help with negotiations, contracts, financing alternatives, due diligence and the many items needed to get from an offer to sale of your business.
The Process of Selling a Business
The first step to marketing your business is to determine the best most realistic price. This may involve planning for a future sale or determining the best achievable price to list your business today. This also lays the groundwork for effectively presenting your business to qualified buyers.
As the seller of a company, you will need to gather the pertinent financial records and provide a comprehensive company background to assist with the valuation process.h
Packaging and Positioning a Business
Smart business buyers are looking for more than just price. They are searching for the right business to meet their needs. How your company is presented to the market helps determine how buyers perceive the sales opportunity. Developing a well documented, comprehensive file on your business, including a solid financial overview, is key to successfully marketing and presenting your business to qualified buyers.
Attracting and Qualifying Business Buyers
Marketing your business effectively requires a combination of marketing channels. We use an extensive network of internet advertising, newspaper advertising, direct mail and business broker association marketing to present your business to as many qualified buyers as possible. And since we have an aggressive marketing plan we get a lot of buyer inquires and have numerous buyers watching for the right business opportunity.
Getting the Sales Contract
Once a potential buyer becomes aware of the opportunity your business presents, has signed a non-disclosure, been financially qualified and had the opportunity to review your company’s presentation file the real selling process starts. Typically, the best way to present the business in detail is to schedule a meeting with the seller.
When the buyer decides your business is the right one for them we work with them to structure an offer. We will then present the offer to you, help negotiate the process, and turn the offer into a sales contract. Often, the terms of the sale are just as important as the price.
Getting to Closing
Once the contract is in place there are a number of hurdles to clear before you sit down at the closing table. Due diligence, lease negotiations, financing, asset allocations, etc. all need to be completed as quickly and efficiently as possible to assure a smooth transition. We can assist you in all aspects of this very important process and help you get to the closing table.
The Fun Part of Selling a Business
Getting to the closing, signing the agreements, leaving with a check and beginning a new dream!