Sell a Business Successfully
More tips to sell a business successfully?
Are you trying to sell your business, and quickly? Check out these tips as they may help you achieve your goal.
- Have a reasonable listing price.
- Be prepared to negotiate.
- Have a folder of information readily available for a qualified buyer.
- Run the business as usual.
- Make sure the business presents well; give it a “spit and polish.”
- Get the business financial statements such as Profit and Loss up to date and keep them up-to-date.
- Put together a current list of Fixtures, Furniture, and Equipment (FF&E).
- Count all inventory so you know the value before you list the business for sale. This helps the buyer understand the final purchase price and reduces one of the many areas of negotiating a deal.
Motivation to sell a business
If your motivation is to sell your business quickly, be careful how you handle each buyer inquiry. If you disclose too much information too quickly it may result in a lower offer from the buyer. Additionally, the buyer may sense your urgency, also contributing to a lower offer or in some cases, frightening the buyer away as they may have a concern you are trying to hide something.
According to the California Association of Business Brokers, it takes about 7 ½ months to sell a business; if it sells. Once you receive a written offer from the buyer and start the negotiation process, it will take anywhere from 6 to 8 weeks to close escrow if inventory is included in the sale. It may take longer if licenses such as alcohol, contractors and other specialties are required.
Selling a business comes with complexities
There are many complexities to selling a business. You have to deal with landlords, keep things confidential from customers and suppliers, franchisors, lenders, creditors, family, friends, attorneys, accountants, appraisers and more. Using the services of a qualified business broker can protect you and your business and achieve your goal of selling your business in the shortest time possible for the highest purchase price.
If you’d like more information about how to transition out of your business, feel free to get in touch with me for a quick consultation. We’ll discuss your particular business, what’s important to you and make a plan for those first few steps.
If you’d like more information about an SBA loan, feel free to get in touch with me for a quick consultation. We’ll discuss your particular needs, what’s important to you and make a plan for those first few steps.