How To Get Your Asking Price When Selling Your Business

Most people don’t realize that for most business owners that is seldom a successors to continue their business when they decide it’s time for them to quit. That fact makes selling a business the most viable exit strategy for business owners.  Selling the business allows the business owner to achieve converting the business into liquid assets and getting a return of their investment of time and money.

Whatever the reason for selling, following these tips for selling a business will help ensure that you get the best price and that your business sells.

1) Sell at the right time for the right reasons.

The number one reason for selling a business is that a business owner falls ill or gets too old to continue to run it – that is the worst time to be selling a business. This situation creates two tremendous issues; 1) it's going to be extremely difficult to deal with the additional stress of selling a business in those circumstances and 2) the buyer will use your circumstances as leverage against you.

Don't wait too long to sell. The best time to sell is when business is good. Don't wait until poor health, divorce, or a downturn occurs" to sell your business. Look to sell from a strong position, on terms you can determine. 

2) Be clear about what you're selling.

Most business transfer transactions are asset sales. So, before selling a business consider what all the assets are (tangible and intangible), and decide what you are selling. Determine what physical (tangible) assets you are selling and what other assets (intangible) you have to sell. Selling a business often includes assets such as goodwill, trademarks or client lists as well as physical  

3) Determine what your business is actually worth.

Your business is worth as much as a buyer is willing to pay in the marketplace. However, determining the initial asking price is critical. There are several business valuation approaches ranging from asset-based to future earnings approaches. No one approach can be used in isolation; the current market, economic trends and what other similar businesses have sold for also need to be taken into account.

Ensuring that a professional valuation is done should be among the first step in selling a business.

4) Make sure your house is in order.

Keep good records and have them prepared for your broker and prospective buyers. Keeping the business's records up to date, the inventory up and the premises maintained are crucial. 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. It is imperative that your business maintains the level of operation as usual and continues to produce the financial results shown in the business profile. If your performance slips, it will turn up during Due Diligence and either kill the deal or affect your selling price.

One Last Tip for Selling a Business

Selling a business is the most complex business transaction most people will ever experience. Therefore have professional assistance is key to ensuring the best outcome. 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.

Any business owner who has sold a business on his of her own will tell you it’s a long, tedious and stressful process.  It consumes time and distracts you from the day to day operation of the business.  When your focus should be on maintaining or increasing the value of your business, all of your time and energy is directed to the sale process.

That’s where an experienced business broker can pay huge dividends.  An experience business broker can help guide you through the complicated process of selling your business. While you focus on continuing to operate your business, your broker will assist with determining the asking price, executing a marketing plan, qualifying buyers, preparing offers, negotiations, and completing the entire transaction to a successful close.

For a complimentary consultation:
Contact  Cecil Williams (cecil@bizbrokerflorida.com) or call  at 888-925-5055 ext.206.  Visit my personal website to search for business for sale in Florida www.bizbrokerflorida.com  Also, visit our Florida Business Exchange website at www.fbxbrokers.com