#sellabusiness

[sacramentobusinessbrokers]

https://www.sacramentobusinessbrokers.com/post/business-brokers-what-are-they-and-how-can-they-help-you-sell-a-business

[metrobusinessadvisors]

Speaking from experience: the necessary factors to sell a business

By Dave Driscoll

For more than 12 years, I have been in the business of helping owners sell their business and move on to their life beyond business.™ As a business broker, I have been fortunate to have many owners place their trust in my experience and skills as a seasoned business owner and I have been privy to learn about many types of businesses inside and out. I’m proud to say that my company, Metro Business Advisors, has sold the majority of the companies we were engaged to represent.

As a long-time contributor to Small Business Monthly I have decided to take a break from writing monthly articles and will instead be contributing periodically, while still continuing to actively sell businesses.

My objective in writing articles has always been to educate owners about what it takes to develop a business for sale, including the emotional preparation that is so crucial. Along the way, I’ve also presented the buyer’s perspective and defined the steps necessary to increase business value so owners can sell their life’s work for maximum value to support their retirement or other ventures.

So, what sells a business?

The seller must balance their wants against what the buyer needs from the purchase.

But what does that really mean?

To successfully sell a business, the seller must realistically consider what the buyer needs to be successful if they acquire the business. The seller must put themself in the buyer’s shoes and remember what would be important if they were the buyer.

As a buyer, would you want to buy a business that…

Is owner-dependent?

Has incomplete financials that don’t tell the true story of the business?

Is part of an industry with an uncertain or unstable future?

Has a seller with unrealistic expectations regarding the sale price or terms?

I approach this from the negative to demonstrate that there is no mystery in the sale/purchase of a business. What is good for the seller is good for the buyer. If a seller is looking for a fool with a big bag of money, they will be very disappointed and their business will NOT sell.

Although I could write many articles (and have!) on each of these four points, let’s focus on a few ways to position a business for the highest probability of being sold.

Owner-dependence. If the business cannot operate without the owner’s daily attention, the company knowledge is “in the owner’s head,” and/or all the customer relationships are managed by the seller, the business really has no sustainable value to a buyer. In the unlikely event a buyer were to entertain buying an owner-dependent business, the seller would need to stay for an extended time to provide training and ensure the business successfully transitions to the new owner. The seller would also need to be comfortable having a portion of the sale proceeds withheld until the transition is complete to demonstrate the seller’s continued commitment to the business’ success.

What can you do?

Train and empower a competent team to be capable of running the business without you.

Establish a second-in-command and decentralize decision making.

Make yourself obsolete – aside from big picture vision and strategizing.

Complete, accurate financials. Buyers need to understand how the business operates, including the sales, cost of sales, gross operating profit, and operating expenses. If your business financials do not clearly and accurately show the buyer these details, how will they determine whether the cash flow will satisfy their goals that are motivating them to buy a business? Incoherent financials will NOT sell a business.

What can you do?

Document all discretionary spending that goes through the business.

Review your P&L and balance sheet monthly or quarterly to identify trends, opportunities, or problems.

Utilize an accounting service to help keep financials current while conforming to generally accepted accounting principles.

Business/industry stability and value. Would you buy into your industry in its current state? I spent 30 years as owner of an envelope manufacturing company. With the development of the ubiquitous internet, the use of envelopes plummeted, creating excess capacity, deteriorating margins, and causing widespread industry consolidation.

If your industry is outdated, shaky, or uncertain, look for a merger partner or consider liquidation. Hanging on to your company with the attitude that you can just work harder and overcome a dying industry will eventually cost you everything.

What can you do?

Either be an acquirer or an acquiree if your industry is faltering.

Always look for tangent or novel markets for your product or service.

Make the necessary investments to keep your company current in technology and innovation.

Seller expectations regarding the sale terms. Simply stated, selling the business will be very difficult if the asking price does not correlate to a reasonable industry “like sale” multiple of free cash flow or the seller is not flexible on price and terms (for example, demanding all cash). Maybe impossible. Recall the fictional “fool with a big bag of money” myth dispelled earlier. Additionally, a seller should not expect to be paid for “business potential” – at best, the buyer will only question why the seller didn’t take advantage of that potential themself.

What can you do?

Base the asking price for your business on a solid market valuation, conducted by a professional.

Focus your negotiations on setting the buyer up to succeed in running a profitable business.

Realize you will need to spend time training and transitioning relationships to the buyer.

So, there you have it – the benefit of my experience simplified into practical action items to best position you for eventually leaving your business. As I am not leaving my business yet, feel free to reach out if I can be of assistance, and don’t forget our library of educational blog posts at https://metrobusinessadvisors.com/blog/. I have enjoyed offering my advice from the perspective of business owner and M&A broker to SBM readers; I wish you the best as you envision, plan, and achieve your life beyond business.™

Dave Driscoll is president of Metro Business Advisors, a mergers and acquisitions business broker, business valuation and exit/succession planning firm helping owners of companies with revenue up to $20 million sell their most valuable asset. Reach Dave at ddriscoll@metrobusinessadvisors.com or 314-303-5600. For more information, visit www.MetroBusinessAdvisors.com.

As seen in Dave’s Small Business Monthly column

[rhodeszale]

Preparing A Business To Sell: A Step-By-Step Guide

Selling a firm is a complex and time-consuming process that requires a lot of planning and preparation. Whether individuals are selling to retire, to pursue other opportunities, or for any other reason, it is crucial to be well-prepared to get the best possible price for their enterprise. Here is a step-by-step guide to help them prepare your business to sell.

Get Financials In Order:

The first step in preparing a business for sale is to get financials in order. Individuals need to have a clear understanding of their company's economic performance and be able to demonstrate this to potential buyers. Prep financial statements for the past three to five years and ensure they are accurate and up-to-date. It includes their balance sheet, income statement, and cash flow statement.

Make A Business Attractive To Buyers:

Making sure a company has a strong brand and a good reputation, a solid customer base, and a competitive advantage in an industry. Consider investing in marketing and advertising to attract more customers and increase the business's visibility.

Hire A Business Consultant:

If folks are not familiar with the process of marketing a firm, it is a good idea to hire a business selling expert to guide them through the process. A professional consultant can help them determine the value of their business, find potential buyers, and negotiate the terms of the sale. They can also assist in getting ready for sale by identifying areas that need improvement and making recommendations for changes.

Remember that selling a business takes time, so it is essential to start preparing as early as possible.

[thebusinessbrokers]

Professional Business Evaluation Consultants

We help you get the best possible price for your existing mid-market and main street business by valuing a business for sale. Drop a word!

[businessbrokerteam]

Find a Professional Business Consultant

Our expert team is dedicated to helping you navigate complex transactions when looking to buy commercial business services. Contact us now!

[ercwlfflogan]

Efficient Ways to Promote your Firm

Our professionals use expert guidance and industry-leading resources for preparing to sell your business profitably.

[jeffreyyryan]

Analyzing the Company's Real Value

We offer an accurate business valuation to know your company's true worth and maximize its potential. Get in touch with us!

[amelialucasal]

Expert Support for your Business

Our knowledgeable business sales service provides maximises the potential of your current company and smooth expansion to specialized solutions.

[businessbuyingandsellingexpert]

Determine the Worth of your Company

Our business valuation services assist various stakeholders in a company in isolating and comprehending its trends, growth patterns, and overall financial condition.

[hostpyters]

Using these platforms, you can find the right business opportunities to suit your needs, whether you're looking to buy or sell.

Each website offers unique features and benefits, so explore them to find the best fit for your business goals. 🌟 #BusinessForSale #BuyABusiness #SellABusiness #Entrepreneurship #BusinessOpportunities

[adamnoblesblog]

Why Sell a Business with Adam Noble Group, LLC?

Our affiliations with the Business Brokers Network (BBN), the Institute of Certified Business Counselors (I-CBC), the International Business Brokers Association (IBBA), and the Texas Association of Business Brokers (TABB) guarantee you that we adhere to the highest professional business brokers standards. Read More: https://adamnoble.com/sellabusiness/

[sacramentobusinessbrokers]

Estate planning is critical for business owners. Here’s why.

Estate planning allows you to protect one of your most significant assets: your business. Yet estate planning is a topic that small business owners often overlook. While it can be challenging to think about what would happen to your business should you pass away or are unable to operate your business, having an estate plan in place is crucial to successful exit planning.

Original source: http://bit.ly/3HOt75n

sellingabusiness #sellingbusiness #sellingyourbusiness #businessowner #businessopportunities #businessbroker #sellabusiness #businesssales #businessvaluation #businessowners #entrepreneurship

[deltabusinessadvisors]

Listen today at 1:00 pm on the Phoenix Radio X  PhoenixBusinessRadioX.com page You won't want to miss today's episode of Tycoons of Small Biz. Austin Peterson and Landon Mance will be interviewing Lisa Riley, owner of Delta Business Advisors LLC in Scottsdale, AZ, today at 1 PM. Lisa will provide some great insight on values of businesses today, whether now is a good time to buy or sell a business and most importantly, how do business owners make sure they exit their business on their terms.

[rhodeszale]

Estimate your Market Growth

Our business valuation consultants provide statistics about a company's assets, income, and competitors in the market.

[thebusinessbrokers]

Closing The Deal: The Ultimate Guide to Business Sales Services

As an existing business owner, closing deals is essential to driving revenue and achieving success. However, it can be complicated to steer the complex landscape of sales services and strategies. Discover the ultimate guide to business sales services, including key techniques, tools, and tactics to help individuals close more deals and attain fruitful transitions.

Understanding a Buyer's Needs

To effectively close deals, it's critical to comprehend one's customer's needs and pain points. Start by researching the target audience and identifying their specific challenges and goals. However, it will help existing company owners tailor their exchange approach and messaging to better resonate with their buyers.

One effective strategy is to use empathy in the sales process. Put themselves in their customer's shoes and acknowledge their perspective. It can assist them in establishing a connection and building trust, making it easier to close deals and drive long-term client relationships.

Effective Sales Techniques

Several sales tactics can support individuals in closing deals more effectively. One popular method is consultative selling, which involves asking questions and listening to their buyer's requirements rather than simply pushing their existing businesses.

Another approach is to create a sense of urgency by emphasizing the benefits of an offer and highlighting time-limited promotions or discounts. Additionally, social proof, such as customer testimonials or case studies, can help build credibility and persuade buyers to invest.

Always keep in mind to stay flexible and adapt to changing market conditions, and often prioritize the customer experience to build lasting relationships and drive long-term success.

[businessbrokerteam]

Market your Business with Expert Strategies

Our team of business selling specialists can help you navigate the complexities of the process and maximize the value of your sale.