Business Brokerage
Is it Time to Sell? Are you considering on selling? Talk to us to learn about our marketing services.We will list and advertise your business in multiple business for sale websites and forums as well as target the approach to specific potential buyers.
Steps to Selling Your Small Business
Selling a small business can be a complex venture that involves several considerations. It can require that you enlist a broker, accountant and/or an attorney as you proceed. Whether you profit will depend on the reason for the sale, the timing of the sale, the strength of the business’s operation and its structure.
The business sale will also require much of your time and, once the business is sold, you’ll need to determine some smart ways to handle the proceeds.
Reviewing these considerations can help you build a solid plan and make negotiations a success.
Reasons for the Sale
You’ve decided to sell your business. Why? That’s one of the first questions a potential buyer will ask.
Owners commonly sell their businesses for any of the following reasons:
Some owners consider selling the business when it is not profitable, but this can make it harder to attract buyers. Consider the business’s ability to sell, its readiness and your timing.
Business Valuation
Next, you’ll want to determine the worth of your business to make sure you don’t price it too high or too low.
Should You Use a Broker?
Selling the business yourself allows you to save money and avoid paying a broker’s commission.
A broker can help free up time for you to keep the business up and running, or keep the sale quiet and get the highest price (because the broker will want to maximize and earn his or her commission). Discuss expectations and advertisements with the broker and maintain constant communication.
Preparing Documents
Gather your financial statements and tax returns dating back three to four years and review them with an accountant. In addition, develop a list of equipment that’s being sold with the business. Also, create a list of contacts related to sales transactions and supplies, and dig up any relevant paperwork such as your current lease. Create copies of these documents to distribute to financially qualified potential buyers.
Your information packet should also provide a summary describing how the business is conducted and/or an up-to-date operating manual. You’ll also want to make sure the business is presentable. Any areas of the business or equipment that are broken or run down should be fixed or replaced prior to the sale.
Finding a Buyer
A business sale may take between six months and two years according to SCORE, a nonprofit association for entrepreneurs and partners of the U.S. Small Business Administration. Finding the right buyer can be a challenge. Try not to limit your advertising, and you’ll attract more potential buyers.
In addition, the buyer may have you sign a non-compete agreement, in which you would agree to not start a new, competing business.
Handling the Proceeds
Take some time – at least a few months – before spending the proceeds from the sale. Create a plan outlining your financial goals, and learn about any tax consequences associated with the sale. Speak with a financial professional.
The Bottom Line
Selling a business is time-consuming and for many people it’s an emotional venture. A good reason to sell or the existence of a “hot” market can ease the burden, as can the help of professionals.
The business sale will also require much of your time and, once the business is sold, you’ll need to determine some smart ways to handle the proceeds.
Reviewing these considerations can help you build a solid plan and make negotiations a success.
Reasons for the Sale
You’ve decided to sell your business. Why? That’s one of the first questions a potential buyer will ask.
Owners commonly sell their businesses for any of the following reasons:
- Retirement
- Partnership disputes
- Illness or death
- Becoming overworked
- Boredom
Some owners consider selling the business when it is not profitable, but this can make it harder to attract buyers. Consider the business’s ability to sell, its readiness and your timing.
Business Valuation
Next, you’ll want to determine the worth of your business to make sure you don’t price it too high or too low.
Should You Use a Broker?
Selling the business yourself allows you to save money and avoid paying a broker’s commission.
A broker can help free up time for you to keep the business up and running, or keep the sale quiet and get the highest price (because the broker will want to maximize and earn his or her commission). Discuss expectations and advertisements with the broker and maintain constant communication.
Preparing Documents
Gather your financial statements and tax returns dating back three to four years and review them with an accountant. In addition, develop a list of equipment that’s being sold with the business. Also, create a list of contacts related to sales transactions and supplies, and dig up any relevant paperwork such as your current lease. Create copies of these documents to distribute to financially qualified potential buyers.
Your information packet should also provide a summary describing how the business is conducted and/or an up-to-date operating manual. You’ll also want to make sure the business is presentable. Any areas of the business or equipment that are broken or run down should be fixed or replaced prior to the sale.
Finding a Buyer
A business sale may take between six months and two years according to SCORE, a nonprofit association for entrepreneurs and partners of the U.S. Small Business Administration. Finding the right buyer can be a challenge. Try not to limit your advertising, and you’ll attract more potential buyers.
In addition, the buyer may have you sign a non-compete agreement, in which you would agree to not start a new, competing business.
Handling the Proceeds
Take some time – at least a few months – before spending the proceeds from the sale. Create a plan outlining your financial goals, and learn about any tax consequences associated with the sale. Speak with a financial professional.
The Bottom Line
Selling a business is time-consuming and for many people it’s an emotional venture. A good reason to sell or the existence of a “hot” market can ease the burden, as can the help of professionals.