Selling a Business
Selling a Business
If you make an effort to understand the steps in selling, of who your likely buyer may be, then careful planning - with the help of a professional advisor, will get you well on the way towards negotiating a price and terms that are suitable to you.
Key points to consider when selling your business. Buyers will be looking for cashflow, and to quantify the value in your business.
Choose experts (experienced professionals) to help you through the process, avoid any pitfalls - legal/ethical or financial.
Valuing your business - determine a realistic price considering your buyer, the market, and the condition of your business. This is generally a job for the experts.
Finding a buyer - Create a marketing plan and an Information Memorandum (you may enlist a broker to help to target your potential buyers. Don't just tell the guy next door! You need to manage the process, tell people, and promote your opportunity widely through print, the internet and direct mail - after all, you want the best prospects for a successful sale.
Structuring the deal - Identify options as to terms - be it what is being sold, vendor finance, training etc., paying attention to any the tax implications. Your accountant and lawyer can help here.
Businesses can take some time to sell - influencing factors include price, type, ease of finance and market conditions.
Preparing an Information Memorandum.
An important tool that assists in promoting your business for sale is a sales information memorandum. This is essentially a business plan in reverse. It should present all the important information about your company, products, industry, and market in an easy-to-grasp format that presents your company in a positive light.
Start with an executive summary that briefly lays out your key selling points. The buyer will always want to know why you are selling, so have an explanation ready. Include sections that outline the facts about your company's history, structure and operations, market, products, historical and projected financial statements, the asking price and basic terms you are looking for, list your employees and any physical assets, together with any other information that explains who you are and why your business is such a strong opportunity. Keep in mind who your audience is and don't divulge any information that you wouldn't want your competitors to see.
In particular, if problems exist, don't try to cover them up. The buyer will find out eventually and will probably distrust everything you say after that. Instead, briefly state the problem and then present one or more possible solutions.
Information provided by www.nzbizbuysell.co.nz.
Selling a Business - To learn more about this author, visit Rob Keating's Website.
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If one of your objectives is to get the best price, you need to consider who the likely buyer may be, then have strategies to target this group. By managing the marketing process you can maximise your exposure while maintaining confidentiality. If you want to sell, and want a good price, then you'll need to tell buyers you have a business for sale! One or two mismanaged ads will only expose your business to a small percent of the buyer pool - and could well alert your employees, customers and suppliers that the business is up for sale. Key employees might jump ship, others might stop putting in the effort, your customers might search for other sources and suppliers might search for other customers. It is important to manage this process and the disclosure of information. Selling your business will be one of the most important things you'll do - you get a single chance to get it right.
If you make an effort to understand the steps in selling, of who your likely buyer may be, then careful planning - with the help of a professional advisor, will get you well on the way towards negotiating a price and terms that are suitable to you.
Key points to consider when selling your business. Buyers will be looking for cashflow, and to quantify the value in your business.
Choose experts (experienced professionals) to help you through the process, avoid any pitfalls - legal/ethical or financial.
Valuing your business - determine a realistic price considering your buyer, the market, and the condition of your business. This is generally a job for the experts.
Finding a buyer - Create a marketing plan and an Information Memorandum (you may enlist a broker to help to target your potential buyers. Don't just tell the guy next door! You need to manage the process, tell people, and promote your opportunity widely through print, the internet and direct mail - after all, you want the best prospects for a successful sale.
Structuring the deal - Identify options as to terms - be it what is being sold, vendor finance, training etc., paying attention to any the tax implications. Your accountant and lawyer can help here.
Businesses can take some time to sell - influencing factors include price, type, ease of finance and market conditions.
Preparing an Information Memorandum.
An important tool that assists in promoting your business for sale is a sales information memorandum. This is essentially a business plan in reverse. It should present all the important information about your company, products, industry, and market in an easy-to-grasp format that presents your company in a positive light.
Start with an executive summary that briefly lays out your key selling points. The buyer will always want to know why you are selling, so have an explanation ready. Include sections that outline the facts about your company's history, structure and operations, market, products, historical and projected financial statements, the asking price and basic terms you are looking for, list your employees and any physical assets, together with any other information that explains who you are and why your business is such a strong opportunity. Keep in mind who your audience is and don't divulge any information that you wouldn't want your competitors to see.
In particular, if problems exist, don't try to cover them up. The buyer will find out eventually and will probably distrust everything you say after that. Instead, briefly state the problem and then present one or more possible solutions.
Information provided by www.nzbizbuysell.co.nz.
Selling a Business - To learn more about this author, visit Rob Keating's Website.
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Dave KurlanDave Kurlan is the founder and CEO of Objective Management Group, Inc., the industry leader in sales assessments and sales force evaluations, and the CEO of David Kurlan & Associates, Inc., a consulting firm specializing in sales force development. Dave has been a top rated speaker at Inc. Magazine's Conference on Growing the Company, the Sales & Marketing Management Conference and the Gazelles Sales & Marketing Summit. He has been featured on radio and TV, including World Business Review with General Norman Schwarzkopf, in Inc. Magazine, Selling Power Magazine, Sales & Marketing Management Magazine and Incentive Magazine. He is the author of Mindless Selling and Baseline Selling – How to Become a Sales Superstar by Using What You Already Know about the Game of Baseball. He created and wrote STAR, a proprietary recruiting process for hiring great salespeople, and he writes Understanding the Sales Force, a popular business Blog and is a contributing author to The Death of 20th Century Selling and 101 Great Ways to Improve Your Life, Volume 2. - Visit Dave Kurlan's Website |
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Linda RichardsonLinda Richardson is the Founder and Executive Chairwoman of Richardson, a global sales training and performance improvement company. As a recognized leader in the industry, she has won the coveted Stevie Award for Lifetime Achievement in Sales Excellence and she was identified by Training Industry, Inc. as one of the “Top 20 Most Influential Training Professionals.” Ms. Richardson is credited with the movement to Consultative Selling and is the author of ten books on selling and sales management, including Sales Coaching — Making the Great Leap from Sales Manager to Sales Coach, and Stop Telling, Start Selling. She teaches sales and management at the Wharton Graduate School of the University of Pennsylvania and the Wharton Executive Development Center. Linda is a frequent speaker at industry and client conferences, has been published extensively in industry and training journals, and has been featured in numerous publications, including The Wall Street Journal, Forbes, Nation’s Business, Selling Power, Success, and The Conference Board Magazine. Learn more about Richardson's sales training and performance improvement solutions at http://www.richardson.com web - Visit Linda Richardson's Website |
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George LudwigGeorge Ludwig is a recognized authority on sales strategy and peak performance psychology. An international speaker, trainer, and corporate consultant, he helps clients like Johnson & Johnson, Abbott Laboratories, Northwestern Mutual, CIGNA, and numerous others improve sales force effectiveness and performance. Though it's George's strategies and processes that help corporations increase productivity and performance, it's his tremendous energy and dynamism that spark the transformation. Again and again, clients remark on his amazing ability to unleash human capacity and inspire men and women to break out of their comfort zones. The result is a whole new type of salesperson. His customized presentations teach achievers to make stunning advances in their lives. From helping salespeople realize cherished dreams to helping corporations exponentially accelerate revenue streams, George Ludwig leaves audiences and individuals empowered, emboldened, and clamoring for more. George is the best-selling author of Power Selling: Seven Strategies for Cracking the Sales Code and Wise Moves: 60 Quick Tips to Improve Your Position in Life & Business. - Visit George Ludwig's Website |
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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Staging DivaDebra Gould, aka The Staging Diva®, is President of Six Elements Inc., an internationally recognized home staging company. Inspired by many requests from aspiring home stagers wanting to start similar businesses, Gould created the Staging Diva Home Staging Business Training Program. Gould has trained over 1000 Staging Diva Graduates worldwide to start staging businesses. Buying decorating and selling six of her own homes in four years lead to an interest in real estate staging which she turned into a career with the launch of sixelements.com in 2002. Since then she has staged hundreds of homes in addition to teaching home staging training. Gould is the author of several home staging resources including a series of popular ebooks made up of a Design Guide, Color Guide and Portfolio Guide. For more information about Debra Gould visit stagingdiva.com. - Visit Staging Diva's Website |
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Jay Kubassek(Jay's Full Bio: EvanCarmichael.com/jaykubassek) In five years, Canadian-born entrepreneur Jay Kubassek went from selling mufflers at a Midas franchise to revolutionizing Internet marketing with the 2004 launch of CarbonCopyPRO, a online marketing education company, now worth over $20 million with customers in over 160 countries.
As an independent film producer, his upstart film fund Aliquot Films is currently producing a films with Spike Lee and Abel Fererra (starring Ethan Hawke and Dennis Hopper.)
Jay's entrepreneurial spirit is irrepressible. He’s the owner of five companies, a professional speaker and trainer, international real estate developer/investor, extreme sport enthusiast and emerging philanthropist. Jay resides in NYC with his wife Jamie, son Milo and dog Cooper. Visit Jay's official website: www.JayKubassek.com - Visit Jay Kubassek's Website |
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David BarrDavid Barr is the President of Venture Opportunities, Inc. David has been a professional business broker/intermediary since 1980 focusing on General Business Brokerage and Mergers and Acquisitions representing client transaction value from $400,000 to $20,000,000. Mr. Barr has handled the sale of over four hundred and fifty companies. David earned a university degree from the State University of New York majoring in economics and business. David holds the Mergers and Acquisition Master Intermediary and the Certified Business Intermediary designations from the International Business Brokers Association. He is also a Senior Business Analyst and a Texas licensed Real Estate Agent. For more information about David and Venture Opportunities, visit www.bizdealmaker.com. - Visit David Barr's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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