Leaving Money on the Table
I think we would all agree that none of us want to leave any money on the table when we put a business up for sale.
So why might the cards be stacked against you by trying to sell it yourself?
- How does a seller know what is the correct asking price of the business? While a seller may be an expert at running the business, are they an expert when it comes to valuation? Do they know all the interacting factors that will be in play when deciding the asking price? Margins, sales trends, inventory, occupancy costs, seller financing, operating systems – the list is not endless, but it is long.
- Where should a seller advertise their business for sale? There are a number of places you can go to place an ad. But where are the best places? What should you say, for example, to protect confidentiality?
- What information should you provide to a potential buyer? And for that matter, how do you know if an inquiry is even legitimate? Could the first person to contact you be a competitor?
- Let’s say you actually find a possible buyer and agree on a price. How will you get the deal financed? Are either you or the buyer in touch with a variety of lenders who can actually help you complete the transaction?
- What kind of legal requirements and hurdles will you face to actually transfer the business in a legal, permanent fashion
These are just a few things to consider when it comes to selling a business. There may be a dozens of other considerations, large and small, before the deal is done.
It Might Be Time to Find a Business Broker
Maybe it makes sense to interview a business broker. See what they have to say about the process. Let them tell you how they will take your hand from stem to stern and hopefully deliver a transaction worthy of the hard work you have put into your business.
If you’re thinking about selling your business within the next 2-3 years, you may find it helpful to speak with a broker about your business to come up with an exit plan that fits your goals.