If the prospect of selling your business has motivated you to read this article, your curiosity indicates you are taking the first step toward a business exit. You don’t have to make a commitment at this point; you are just informing yourself about what is necessary to make a successful exit. This article should answer some of your questions and help you through the maze of the selling process itself.Details
“Independent business owner” is a phrase with two meanings. Of course, it means being the owner of an independent business. But another way to look at “independent business owner” is to let this phrase define the very personality of the person at the helm. Independent. Confident. Self-assured. Strong-willed. These are vital entrepreneurial attributes but, ironically, they can sometimes work against the business owner when it comes time to sell. This post introduces five important selling points that can help business owners achieve a successful sale of their business.Details
Not every prospective buyer actually buys a business. In fact, out of 15 prospective buyers, only one actually makes a purchase. Sellers should remember that being a buyer can be stressful. Buying a business is usually one of the single largest financial decisions a person can make. In this article, we are going to explore a few of the reasons why being a buyer can be both stressful and taxing. Understanding a buyer’s perspective will help you on the road to successfully selling your business.Details
Business owners who are considering selling a business should realize there are many different types of prospective buyers. Today’s prospective business buyers are more sophisticated and diverse than ever before. Let’s take a closer look at the different types of prospective buyers and what you should know about each of them.Details
It is common for company executives to undergo annual physical check-ups. They are also likely to examine their own investments at least once a year, if not more often. However, rather perplexingly, these same capable and responsible executives often fail to consider giving their company an annual “check-up,” unless required to do so by rule…Details
Unexpected issues can severely impact the turnaround time when selling a business. Understanding these potential issues in advance will help sellers better circumvent them if they arise. Here are four unexpected aspects of the business sale process that can pop up:
1. Time Investment
Sellers are typically unaware of the time investment required to filter prospects versus “suspects,” as well as compile all of the necessary documentation required by a potential buyer to complete the sale of the business. An intermediary (business advisor) can assist with these tasks and save sellers valuable time, which they can continue to invest in managing their business and maintaining profitability.Details
The valuation is a major factor that influences the overall selling price of a business. Business valuations are based upon a multitude of criteria and indisputable records, such as comparables, projections, discount rates, EBITDA multiples, and more.
While the business valuator may have all the information he or she needs, some business elements might be overlooked in the valuation. That’s why it’s extremely helpful for business valuators to first grasp the purpose of a valuation prior to getting started. Unfortunately, the valuator is often unaware of additional considerations that may enhance, or even devalue, a business’ overall worth.Details
Thinking like a prospective business buyer could be the difference between selling your business and not selling your business. This is why, when dealing with a buyer, it is of paramount importance that you always try to put yourself “in the other person’s shoes.”Details
A common mistake many make when preparing to buy or sell a business is to overlook the variety of legal issues involved. A legal mistake can bring the entire process to a screeching halt, or even worse, cost you a small fortune. For this reason, it is important to carefully evaluate the full slate of…Details
Negotiations can be tricky affairs. One wrong move can undo a tremendous amount of work. In negotiations, it is best to take a moment and think about where the other party is coming from.
What are their needs and how best can you meet them? Understanding your buyer’s motivation increases the chances of a successful negotiation.Details
The majority of business sales include some form of seller financing. Typically, seller financing is when the seller provides a loan to cover part of the purchase price. The down payment covers the rest of the purchase price, but other financing sources are often used as well. Summed up another way, the seller is essentially acting as a bank for the buyer.
When sellers offer financing, it often also helps them achieve a higher final sale price. Sellers who are not open to seller financing will likely limit their possibilities.Details
When it comes time to sell the company, a seller’s prime concern is one of confidentiality. Owners are afraid that “if the word gets out” they will lose employees, customers and suppliers. Not to downplay confidentiality, but these incidents seldom happen if the process is properly managed. There is always the chance that a “leak”…Details
Over the years, we’ve noted we are asked questions again and again. Here then, are the four most common questions asked by sellers: 1. How long will it take to sell my business? It generally takes, on average, between five to eight months to sell most businesses. Keep in mind that an average is just…Details
If your business is not location-sensitive, that is, if your business location is immaterial to its success, then the following may not be important. However, lease information is usually helpful no matter what the situation. The business owner whose business is very dependent on its current location should certainly read on. If your business is…Details
The term “growing the business” seems to be the term of choice for business people who discuss expansion. Unfortunately, in too many cases, this growing never goes beyond the seedling stage. Business people also talk about “thinking outside the box.” Again, that concept encompasses so much – what box? How far outside? – that it…Details