|
by Tom West
Back to
business opportunities articles index
Those business owners who decide to take
advantage of a favorable market should act
quickly to launch the selling process. There are
vital steps to take--and crucial realizations to
face--in preparing for this all-important
transaction.
1. Resolve current problems as soon and as
thoroughly as possible. If the business is a
partnership, both parties should be agreed about
the major decisions to be made in the selling
process. Hopefully, in cases where the business
is a partnership, a buy-sell agreement is firmly
in place.
2. Financial records must be accurate,
up-to-date, and impressive indicators of the
owner's business ability. Some buyers may be
willing to buy potential, but they don't want to
pay for it. In fact, sellers should be open
about all aspects of the business that might
affect the sale; otherwise, once the real facts
are revealed (as they inevitably will be!), the
sale may be lost.
3. Sellers must understand from the beginning
that they may have to help finance the sale. The
seller's business broker, in qualifying
potential buyers, will also assess their
financial credibility and their ability to run a
successful business, thus helping to take the
understandable fear out of seller financing.
4. Sellers should also seek the advice of a
business professional in determining price. The
business broker will apply industry-tested
valuation methods, and will incorporate those
intangibles to be ensure that the business will
not be under priced. At the same time, the
business broker will point out to sellers how
the price is dictated by the marketplace and
that realistic pricing is an absolute must. Most
buyers, faced with an out-of-sight price won't
wait for it to drop--they'll just go elsewhere.
5. In marketing the business for sale,
sellers benefit many times over from the
guidance of a business broker professional. The
business broker who lists the particular
business for sale represents the seller and
works toward completing the transaction in a
reasonable amount of time and at a price and
terms acceptable to the seller. The broker will
also present and assess offers, and, at the
appropriate juncture, he or she can also help in
structuring the sale transaction itself. The
broker and the seller become a team, involved in
a relationship of mutual trust, with the common
goal being the successful business sale.
If you have made the decision to sell your
business, the wisest first move is to contact a
qualified business broker professional, who can
. . .
--Advise you on pricing and structuring the
sale of your business.
--Prepare the marketing strategy, using
professional resources.
--Determine the right buyer for your
particular business.
--Educate buyers in the business-buying
process.
--Keep you informed about market reaction.
--Present offers and point out strengths and
weaknesses.
When it comes time to sell, one of the best
decisions a business owner can make is to
continue managing his or her business
efficiently (and profitably), while depending on
the services of a business broker to forge the
steps of the sale. The business broker
professional is an invaluable advisor during the
entire process, offering both objectivity and
negotiation skills honed through years of
experience in the buying and selling of
businesses.
Back to Top
|
