When it comes to getting your business sold, there can be a lot of misconceptions or presumptions in your way about what your business is worth, how to position it to a prospective buyer and how to seal the deal.
You can benefit from leveraging the expertise of a business broker who can help you get the business on the market, find the buyer, negotiate a premium price and the legalities of closing the sale. Handling it on your own can be a slow and grueling process that can span from months into years.
The last thing you’ll want is to be unprepared – so here are some key things to keep in mind while you’re offering the keys to your kingdom to the highest bidder.
1. It can take a while.
The first thing you’ll want to be prepared for is time. You’ll need a good bit of it. Be prepared to continue running your business for 6 months to a year or more after announcing your sale. It can be difficult finding the right buyer, and just as difficult closing the deal.
2. You’ll definitely want help.
Your best bet as a business owner when it comes to getting your business sold is through the help of a professional business broker. While you can always find and negotiate your own terms with a buyer, you can avoid loopholes and pitfalls you may not see coming by having the expertise and experience of a business broker. Having a broker like Evolution Advisors with strong experience in business sales can smoothen the process, and cut the time it takes to find your right buyer.
3. Buyers want revenue, not potential.
Forbes claims that eight out of ten businesses fail in a year so its important to position your company on the potential growth and revenue. Keep in mind the potential cannot be based on the history, and has to take into the account the challenge of a new owner. Marketing a business based on what it could do, instead of what it already does is a surefire way to get passed up in saturated market of sellers.
4. Keep tabs on everything and have your accounting in order.
While it may be too late to get the details for transactions made years ago, keeping exact tabs on the last few quarters is essential in order to convince a buyer that your business is a good deal. Your businesses accounting must be up to date and easy to understand. Having poor accounting is the first item that will turn away buyers, and one of the easiest to have under control.
5. Sell your company in a strong year.
Finally, don’t sell your business while you’re in a slump. Businesses are best sold when they’re doing well, which is when you’ll get your best deal and the freedom to move on to something else. Only 17 percent of business owners actually get to retire after selling their company, according to SmallBizTrends – don’t be in the majority.
Evolution Advisors proven system with business sales provides business owners with the tools and means to evaluate and sell their company. Through market analysis, research, and a step-by-step value builder system, we provide clients with everything you need to get your business sold. You can also connect with them on Facebook for more updates.
