Entrepreneurs invest thousands of
hours when nurturing and building a successful business. However (or
unfortunately) when it comes time to sell that business, most business owners
underestimate the complexity of the process and the time required for a sale.
Here are several tried and tested
keys for business owners contemplating selling their business:
Seek advice
from a knowledgeable business broker about the value of your business.
Use a professional Business
Broker to sell your business. Your business Broker should belong to a professional
organization such as the IBBA (International Business Brokers Association and
in Florida, Business Broker of Florida (BBF). These organizations have
established professional ethics and rules for their members in addition to
training for members to make certain they are knowledgeable, competent, and
abide by the highest professional ethics.
Support your
broker. Your
broker can’t help your business without your help. Your continued support
during the buyer meetings, negotiations, and due diligence is absolutely crucial
to closing the deal. A business owner selling their business needs to respond
quickly to inquires, offers, and with paperwork because timing can make or
break deals.
Allow
adequate time to sell your business. Selling a business is significantly more difficult and
complex transaction for both the seller and buyer. The amount of time your
business remains on the market is impacted by a number of factors: the current
market both nationally and in your state, the type of business or industry, and
the size of your business. Yes some businesses sell quickly, however most
business owners should anticipate up to six months and allow up to a year to
finalize a sale.
Keep good
records and have them prepared for your broker and prospective buyers. Good financial records and
other business documentation can help expedite the buyer’s due diligence
process and increase the chances of a victorious and lucrative sale.
Run the
business as usual or better. It is critical that your business maintains the level of
operation as usual and continues to produce the financial results shown in the
business profile during the selling process. If your performance declines, it
will turn up during due diligence and either impact the deal closing or affect
your selling price.
For a complimentary consultation
Contact Cecil Williams
For more information call me at 888-925-5055 ext.206
