Placing your business for sale and actually selling it is a complex process. Most sellers do not know how complex it can be.
People going into the process blindly are surprised by the many pitfalls that can come their way, not to mention how difficult it can be to keep the business running profitably while in the process of finding a buyer. It’s a daunting task which in many cases results in failure to sell or even worse a decline in business profitability!
If you have a business for sale, you should consider the following key factors ( Pitfalls ):
Confidentiality must be maintained – Having the world know that you’re looking to sell your business can and most likely will be a major problem. If employees and vendors find out in advance that the business may be sold they could easily jump ship, leaving you with an unprofitable business when you need it to be at its best in order to look like a worthwhile investment to potential buyers. And rumors ( usually un true ) pertaining to why you’re selling in the first place can accentuate the problem.
The Sale must be advertised everywhere – But where? It’s important to know exactly where your advertising will be the most effective. Sometimes competitors need to be contacted. This must be done without divulging the name or location of the seller.
The Business must still be run effectively and profitably – Running a successful, profitable business is a full time job. When the highly involved process of selling that business coincides with keeping the business running well something has to give. Either the business suffers or you miss out on potentially the best buyer or buyers. Once a business starts to decline buyers lose interest.
Due diligence must be performed – You need to be well organized throughout the entire selling process. What are the Market Conditions ? How do you know if a buyer is qualified? Are you getting the best price? Have you provided full disclosure. Has full disclosure been provided to you? Due Diligence of both the seller and yes the buyer are key factors for a successful sale.
Placing your business for sale may seem like a daunting task, but it can be done – if you have the right help! The right Business Broker can provide the experienced, qualified help you need. The person that lists your business is the one that will represent you in this process. Check their financial and business background to determine who is right for you.
Rules to Follow:
The three rules in selling a business are: One, always make a good first impression, with every buyer. A good first impression can be the difference between a good price and a bad one. Second, correct facts and figures will make or break a deal. Current facts and figures, will increase the likely hood of a sale. Finally, connect with the buyer and develop the buyers trust.
In addition, a seller must determine if a business is salable and how the appraising process works. Contacting us is the best way to discover the worth of your company. By simply answering the questions and giving us updated information, you’ll get the answers you need. In the appraisal process, there are a lot of factors that the appraiser must consider. Your net profit, gross profit, and turnover fluctuation are all important factors. The age of your business and your company’s location will also play a role in the appraisal process.
Selling your business is stressful. The use of a competent business broker will reduce the stress and make the process manageable. If you’re looking for a business broker, or you are someone looking to buy a business, Business Planning Advisors, Inc. should be your first stop.
For more information about selling your business in Miami, Florida, contact Richard Zarzecki of Business Planning Advisors today!