|
|
Like this article? PLEASE +1 it! |  |
|
Selling a Business – Where Does One Begin?
| Guest post by: Mike Derrick |
Article Overview: Most business owners have not previously sold a business and therefore require professional guidance. This article provides insight that will benefit owners seeking to sell their business.
 |
Free Download - Sale of a Business By Mike Derrick |
Selling a Business – Where Does One Begin?
Each week we are contacted by business owners desiring to sell their business. The sale of a business, however, often presents complexities that the business owner fails to recognize. Since experienced and professional business brokers have likely encountered these complexities in previous transactions it is, therefore, recommended that the business owner commence the process by contacting a reputable business broker that meets the lofty standard needed to fulfill clients' objectives. The business broker will provide a level of expertise that will not only enlighten the seller to the many facets involved in selling a business, but will also facilitate the likelihood of a transaction that satisfies both the seller and buyer.
Numerous steps must be undertaken to prepare for the actual sale of a business. Foremost, a business broker should be engaged to represent the business owner in the sale of the business. Once the business broker is familiar with the business and the owner's objectives become known the business broker will collect relevant data in order to provide the owner with an opinion of the value of the business. Sellers, however, often begin the sales process with a preconceived notion as to the value of the business. Unrealistic expectations will cause serious buyers to seek other opportunities that offer a better return on investment. Another impediment to the sale of a business can be a sellers' belief that the future potential of the business should have a material influence upon the valuation of the company. Business owners must be made aware at the outset of an engagement that the sale of a business begins with the establishment of a realistic price that stems primarily from the historical financial results of the business. While exceptions may occasionally apply, the sale of a business at high multiples is normally associated with large companies and not companies located on Main Street America. If the seller does not grasp this concept then the probability of a successful transaction becomes problematic and the business broker will have to intervene to re-educate the seller. The seller must understand that the successful sale of a business is achieved when the right pricing strategy is employed.
Presenting a business to the marketplace is a skill that entails much more than merely advertising on the internet. The owner and business broker should collaborate to identify the ideal profile of a buyer. This step is a key element that business owners should consider when first contemplating the sale of a business. Professional firms will then conduct research and reach out directly to buyers matching the ideal profile.
Business owner(s) will quickly understand that the sale of a business does indeed require a solid commitment. Financial records must be accurate and well documented; operational procedures should be readily available and easily communicated to prospective buyers; and, realistic growth opportunities must be identified. An owner can be assured that the sale of the business will also be much easier and more profitable if the right business broker is engaged for the sale of the business.
Consultative Selling Won't Fill Your Pipeline
Improved Sales Training Stop Selling Your Products and Start Selling Your Results to Get Customers
A Simple Approach to Improved Sales Stop Telling to Get More Selling
One of the Most Important Sales Skills
Small Business Marketing: 8 Cross-Selling Tips to Increase Your Sales
Selling Strategy: Start-Stop-Change
Quote: Taking African products where there’s no bias
Startups and the Dilemma of the First Sales Hire
How To Generate Internet Income With Digital Information Products
List of small business ideas
A Beginner's Guide to the ClickBank Affiliate Program
Team Effort
Beginner’s Guide to the ClickBank Affiliate Program
Selling Scripts That Work
Grow Quickly Inside Your MLM Company
Earning Affiliate Commissions Start Today
T.G.I.M. - Thank God It's Monday
As an Affiliate Internet Business Owner Who Are You Branding?
Selling Power 26
How to Demonstrate Value to Your Company
Referred by: http://www.hbgadvisors.com
|
About the Author: Mike Derrick RSS for Mike's articles - Visit Mike's website As a solid advocate and proponent for small to mid-size business owners that desire to formulate an exit strategy I, along with the other members of Huntington Business Group, have been very successful assisting clients achieve their objectives. Our unique approach that instills trust and confidence with our clients is primarily attributable to the VentureXchange system that Huntington Business Group introduced in 2010. VentureXchange is a proprietary system that reshapes the typical focus of the business brokerage industry. The specific focus is upon the business owner. The early phases of this system allow us to quickly get a grasp of the business owner's ultimate objectives (i.e. the sale of the business may only be an intermediate step to his/her real objective). We also focus upon a number of other factors to ensure a successful transaction. Savvy buyers look beyond the financial results in order to be certain that risks can be minimized. VentureXchange was designed to anticipate risks and to alleviate these risks. Our system quickly positions the seller and his business for an optimal solution. With more than 20 years of M&A experience in the corporate environment my ability to assist both buyers and sellers in their efforts to fulfill their dreams has been very both successful and rewarding. I specialize in a number of industries, but my experience and that of Scot Cockroft, the owner of Huntington Business Group, allows us to provide the level of professional expertise sought by any business owner. As a graduate of University of Texas at Austin and a long time resident of the state I direct most of my M&A activity within Texas, but many businesses in the bordering states have enjoyed our business acumen for several years. Our success, as we extend our reach beyond Texas, is the result of the national recognition we have received as evidenced by the #1 ranking Huntington Business Group was awarded for being the most successful business brokerage firm in the VR Network for 2010. At the same time the Dallas Business Journal recognized Huntington Business Group as 2010's Dealmaker of the Year. These accolades are, of course, very rewarding to our firm, but more importantly, they reflect our commitment to the client. Click here to visit Mike's website   Selling a Business Where Does One Begin Buying a Franchise The Right Decision Sale of a Business An EarnOut May Seal the Deal Stock Market Volatility and the Impact on SmallMedium Size Business Owners and Buyers |
Related Forum Posts
Blog pinging
- Thanks Martin - yes, I do ping and it has been very effective. I'm currently on the first page of Google for Mastermind Group and on the second page for Selling to Small Business.
My entry
- 1. The Best Business Books Ever: The 100 Most Influential Business Books You'll Never Have Time to Read
- this is a fascinating book about the history of Business theory, and I'd recommend it to anybody.
2. The Big Book of Small Business: You Don't Have to Run Your Business by the Seat of Your Pants, by Tom Gegax. Ditto.
3. PADI: The Business of Diving Book
Okay, so this book won't be of use to anyone who doesn't want to start a scuba store, but I did, and this book was of course invaluable to me in reaching that goal.
Exclusive: Interview with Results
- Hi Forum Members,
I'm helping start up a Business Coaching and Consulting company here in Toronto, Ontario, Canada (a Subsidiary of RSC Business in Los Angeles).
As a Research and Development Intern I am required to practice my listening and interview skills by surveying Small and Medium Businesses on thier Business.
This Survey is designed by RSC Business to also assist the Business being interviewed more insight into their own business.
I am looking to interview about 30 businesses across North America over the span of 3 months.
At the end of these interviews I will be publishing a report of the results and they will be made available for free to the Interviewees. The Report data will include responses from a minimum of 100 interviews.
I would like to extend this opportunity to members of the Forum.
If you would like to have this short 20-30 minute interview conducted on your Business and you reside in North America please send me an email or PM.
Please contact me at andy[at]jvprosperity[dot]com to arrange our interview and to get free access to the results when they are published.
Re: Kevin's Case Study #10 - When to become an entrepreneur?
- When the bug bite you. A lot of successful entrepreneurs started in their teens or at school. Selling sweets to fellow students or lemonade to firends in the neighbourhood.
Re: This is Marketing Warfare!
- Hey GT,
I guess this was from a while back, and it'll test your memory a bit but could you possibly elaborate on Unique Selling Proposition?
Can you give us some examples of good USPs?
Share this article with your friends. Fund someone's dream.
Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.
by: Jeff Ogden, B2B Lead Generation Strategies
Best Automated Forex Trading Strategy
Build Your List with Joint Venture Giveaway Events
May 2012 Top 100 Social Media Experts to Follow on Twitter
What to measure to be phenomenally successful in business
10 mistakes of media relations
Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!
Work at home Opportunities for the Disabled
What Aweber Can Do For Your Online Business
Make Small Commitments. Get Big Changes.
Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.