8 Tips for Selling Your Business
We read an article back in 2018 entitled, "8 Need to Know Tips for Selling Your Business in 2018" from business.com, and we believe it’s still relevant today. The article offered the following suggestions for business owners, and we wanted to pass them along: (Our comments follow in italics.)
Seek legal and financial expertise.
Keep it quiet. We completely agree that you should only tell the advisors in your circle that are absolutely necessary.
Hire a professional business broker to help you with listing your business for sale.
Set a realistic asking price. A professional business brokerage firm will help you set the price correctly. There are times when an Independent Certified Business Valuation will be necessary, and a good business broker will know when that is. Be cautious of the business broker that sets the listing price simply by asking you what you think it’s worth without performing an analysis. A professional business broker should be able to perform a market analysis of your business and help you determine the listing price. You don’t want to waste your time and money pricing your business out of the market. There are many factors that are important to consider when determining listing price. Make sure you have the right firm in your corner.
Get the paperwork in order.
Separate your personal expenses from the business. Having your paperwork and expenses in order will help in pricing your business, but it will also help during the due diligence process. Buyers will get skittish when things look confusing or out of order. A lack of financial organization has killed more than one deal.
Get your offers in writing. A professional brokerage firm will help you with negotiations and provide you with guidance when buyers make you an offer. There is value to having someone who has negotiated numerous deals (dozens to hundreds) on your team when this is the first business you’ve sold.
Tidy up your curb appeal.
The points made in this article are helpful, but they are far from exhaustive. We at Resolution Equity Partners would be more than willing to help you think through your options.
Let us know if we can help you with any of your selling or buying needs. To schedule an informational meeting, contact us today!