The Internet is full of comprehensive guides to selling your business. Ultimately, however, a speedy and lucrative sale boils down to creating the perception of value. If you want to sell your business, a few simple strategies can boost value, create a competitive bidding climate, and ultimately bolster sale value.
Get Your Books in Order
Buyers are inherently risk averse. They want clean, organized, understandable financial records. You need an accountant who specializes in small business, and ideally in M&A, to maximize the efficiency of this step.
Seek Help From Professionals
Selling a business is a complicated undertaking. It can take you away from the daily demands of running your business, potentially undermining value. Business brokers are similar to real estate agents, but for businesses. They facilitate a speedy, lucrative sale by marketing your business and handling many of the details. Because they have sold many businesses, their experience is unparalleled. They are often well connected to valuable people in the business world, including attorneys and financiers. They can make you and your business seem more polished and more credible. The key is to interview the broker you have in mind and get details about their specific strategy for selling your business.
Business sales rarely happen overnight—and when they do, the terms are often unfavorable to sellers. It can take some time for the right buyer to find your company, and for you to seal the terms of the deal. In today’s environment buyers routinely wait 18-24 months, and sometimes a little longer. Adjust your expectations to fit this reality.
You love your business. That makes it easy for you to be blinded to your business’s faults. Some businesses believe that their love of the business is enough to justify a lucrative sale. You must be realistic. Compare your businesses to other businesses, then consider how you stack up against them. Is your team better? Are your books in order? Look at how businesses similar to yours have sold over the last 12-24 months. This is the best indication of what you can expect for your business. So be honest with yourself in making your assessments, then work with your broker to cultivate value wherever possible.
About Five Talents Financial Group
There comes a time when business owners should decide how they will handle the exit of their business. Prudent entrepreneurs do not leave this critical juncture to chance, they plan for it thoroughly and well before such an event should occur. Successfully navigating the sale or transfer of your business requires a dedicated and capable team. The members of Five Talents collectively possess nearly a century of business experience combined with specific industry training and certification. The skills and know how, combined with a deep commitment to the best possible outcomes for our clientele, enable us to provide you with advisory services you can feel secure with.
Give us a call to have a confidential discussion about what may be right for you and your family.