How To Sell A Business
If you are a business owner looking for a buyer for your business, it is important to appreciate the process of how to sell a business in order to increase the chances of your success. The purpose of this article is to discuss some of the things you can do to improve your chances.
Talk to a business broker
The field of business brokerage is unique and you should consult with a professional that specializes in the purchase and sale businesses. Selling a business is a much different process than selling real estate so you should talk to an expert.
Get your business organized
Pretend you are a potential business buyer taking a first impression of your business. How does it present? Is it tidy and organized? A clean and well kept business goes a long way to impress business buyers.
Have your financial information organized
Talk to your chartered accountant to ensure that you have accountant-prepared financial statements. Not only will a buyer ask to see these but so will a bank if financing is required for the purchase.
Ready yourself personally
If you have owned a business for a long period of time then the idea of selling it may be difficult to comprehend once a willing buyer is in hand. Take a frank assessment of your situation to determine if you will be ready to let go.
Decide what is important to you
Selling a business is so much more than getting your price. There are several other deal points that need to be negotiated such as potential vendor financing, transition & training, employee issues, and so on. Be prepared to be flexible during a negotiation. Since there are many deal points in a business sale, you should be prepared to compromise.
Set a realistic selling price
Too often, business owners have unrealistic expectations when it comes to determining a listing price for their business. The reality is that a price that is too high will most likely result in a business not selling. Talk to a business broker or business valuator to discuss a potential selling price for your business.
Get ready for a potentially long process
Selling a small business usually takes longer than selling a house that has a similar price. The reason is that there are much fewer potential buyers for a business than there are for a residential home. A business can potentially take up to 6 months to sell.
If you are considering selling your company, consult with a reputable business broker to discuss how to sell a business with you.