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Prepare
For The Sale Well In Advance
A good business broker will prepare an
offering portfolio for the business to
have ready for qualified buyers.
The business owners can help in the
process by "housecleaning" -
as well as a literal sprucing up of the
facilities. Business Owners should plan
years (5-7) in advance of exiting their
business. About two years before
the anticipated sale, the Business Owner
should engage a good Business Broker to
prepare an Offering Memorandum... and so
on.
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Place
A Reasonable Price On Your Business
An inflated figure either turns off or
slows down potential buyers, rely on
your business broker to arrive at the
best "win-win" price. An
"unrealistic price"
discourages many buyers from even
looking at a business.
-
Carry
On "Business As Usual"
Don't become so obsessed with the
transaction that your attention wonders
from day-to-day demands, affecting
sales, costs, and profits.
-
Engage
An Expert Business Broker
A breach of confidentiality surrounding
the sale of a business can change the
course of the transaction and damage a
business in the future.
-
Anticipate
Information The Buyers And Their
Financing Sources May Require
In order to obtain financing, the buyer
will need appraisals on assets.
Lenders will require at least three
years of tax returns and the most recent
financial statement.
-
Achieve
Leverage Through Buyer Competition
A good business priced properly many
times will create interest from several
buyers and create a competitive
situation.
-
Be
Flexible
Don't be the kind of seller who wants
all-cash at the closing, or who won't
accept any contingent payments or an
asset transaction. Depend on the
advice of your business broker - their
knowledge of financing and tax
implications.
-
Negotiate;
Don't Dominate
You are used to being your own boss, but
be prepared to learn that the buyer may
be used to having his way, too.
With your business broker's help, decide
ahead of time "when to hold and
when to fold."
-
Keep
Time From Dragging Down The Deal
To keep the momentum up, work with your
business broker to be sure that
potential buyers stay on a time schedule
and that offers and counter-offers move
in a timely fashion.
-
Be
Willing To Stay Involved
Even if you are feeling burned-out,
realize that the buyer may want you to
stay within arm's reach for a while.
Consult with business brokers to
determine how you can best effect a
smooth transition.
