Selling your business is at the heart of American commerce. You are a small-business owner. Your business has grown over time. Your achievements are recognized and praised by us. Nearly all of us are like you because we have been in your shoes and run a business. You are now considering selling the business. You are now considering the options for selling your business.
You are aware of the importance confidentiality and want to know how you can market the business without disclosing sensitive data prematurely or disrupting the status quo. Trusted advisers such as your CPA have helped you manage the business to minimize tax liabilities. However, you are now curious if income statements could have an impact on the asking price of the business. It is possible to discreetly find a buyer.
The problem is that you don’t know everything. Although you may know a lot about running your business this deal could be the best deal of your entire life. It is important to ensure you are getting the best price and exposure. It is important to understand how to properly qualify buyers prospects and evaluate their offers. A misfire is not something you can afford.
You need support. An experienced professional who is familiar with the business of selling businesses is what you need. Your attorney and CPA may be involved but they don’t actually sell businesses. A business broker is necessary.
Business Brokers: Key Professionals For Selling Your Business
A broker must have proven experience in the area you are looking for. Because you value their expertise and knowledge, you need a brokerage that is current in membership to all of the major professional associations. A large support staff will maximize the time that your broker can spend selling your business.
A professional broker should be part of a local firm, one that has sold thousands of business locally. A professional broker should have many references. It is important to get high quality exposure to qualified buyers in order to obtain quality offers for your company.
It’s all about numbers. You will have the advantage if you have the most experienced brokers and the largest buyer pool. You can leverage your strength by leveraging the numbers.
The best path to success is the one that leads you to your company’s sale. The path should be easy to follow with few forks or intersections where you could make a wrong turn. Certified Business Brokers is an experienced navigator. They use their refined process and methodology to help you reach your goal…getting at the closing table.
Selling Your Business: Getting Ready To Move On
You’re likely to have considered selling your business at least once if you are like many business owners. It is normal to imagine what it would feel like to be free from all the headaches and responsibilities that come with running a business. It’s likely that you are also curious about how complicated and difficult the sales process is.
Although we cannot predict what your mind will come up with when you think of freedom, it is possible to tell you that selling your business takes a significant commitment and should be considered carefully. Like most things, what you put into it will result in the same thing. Preparation is key to a successful sale.
Preparation is key to a successfully selling your business. It’s important to know what to expect, understand the motives of your most likely buyer, anticipate their questions and identify any potential problems in your business that could hinder or delay a sale. You might be able to stop asking questions and start living your dream once you are comfortable with the basics.
Three distinct phases of the business sales process should be handled confidentiality. It is crucial that your business remains anonymous during the selling process. This is essential to protect your interests. According to the BizBuySell statistics, the majority of businesses are sold within four to nine month.
The Three Phases To Selling Your Business
First Phase: Preparation For Sale
The first phase of selling your business involves getting a valuation of the business. A valuation gives you an objective range of prices that you can expect to see in the market. It is easy to gather the necessary information for a valuation. The documents needed to establish the likely price range for a company include tax returns from the last three to five years, current year profit loss statements, balance sheets, and equipment lists.
A company’s financial history for many years can help to paint a picture of its financial situation and the current trends. The business profile is created during the initial phase to determine its value. This includes a detailed analysis and assessment of your business to help you communicate its value, market, assets, strengths, areas that could be improved, and financial history. This profile presents your business to appropriate buyers while maintaining your privacy.
Second Phase: Marketing
This is the phase of selling your business where the process goes public. This stage is a flurry of behind-the scenes action. Interviews will take place with potential buyers. Confidentiality agreements will be signed and questions answered. Meetings will also be arranged. The seller must keep the business running as normal. The seller must not divert attention from the day-to-day business operations. This could affect clients, employees, sales, profits, and ultimately, lower prices in the market.
Third Phase: Contract For Sale
This is the final phase. After an offer has been accepted and contract drafted, you are on the path towards closing the sale.
Due diligence is the first stage of this process. This is the buyer’s investigation or auditing of the business. Due diligence confirms all facts regarding the sale. This includes reviewing financial records and any other information that could be relevant to the sale.
Sellers may also conduct due diligence on potential buyers. The buyer’s ability and other factors that could affect the seller or purchased entity after the sale are completed may also be taken into consideration. This is particularly important if the seller finances part of the deal.
Closing activities can begin after due diligence has been completed and both parties have been satisfied with the results. These are some of the activities that will likely take place during the closing phase.
- Financing/Loan arrangements
- Assignments of property leases
- Environmental testing, inspections, surveys, appraisals
- Transfer equipment leases, contracts and licenses or application for new ones
- Transfer of utilities and other service, domain name, title to vehicles
- New corporate legal entities, merchant account openings, and insurance policies
- Clearing tax liens
- Verification of trade receivables, inventory count and payables
The final mile is often bumpy, curvy, or detour-prone. These obstacles can be overcome if you have an experienced driver who is well-versed in the terrain. After many thousands of trips, we are familiar with the route and can safely get you to your final destination where you can then enjoy the profits from years of hard work, This is where your dreams become reality and made the whole trip of business ownership so worthwhile!
Mission Peak Brokers Assists Selling Your Business
Our experience includes selling Liquor Stores, Restaurants, Gas Stations and SBA Loans. Check out our video channel and Mission Peak Brokers blog for more information about how we sell businesses.
To schedule a confidential consultation with us to discuss your needs and determine whether we are able to help, please complete our Seller Contact form. Feel free to contact us via telephone or email us.. We hope to hear from you soon.
