Sell My Business (4 Easy Steps to Get the Best Price)
There are definite steps you can take to find the right deal when selling your business. Although every sale is unique, the fundamentals are the same, and there are well-established steps you can take to get you started on a very popular question for baby boomers business owners in California: “how to sell my business?”
The more prepared you are, the more likely you are to profit. Getting your business ready for sale a year or two before the actual sale is ideal to get things in order and get the highest possible price.
You will profit the most if you get things in order and sell your business for the most value if you hire a good business broker in California, sell it at the right time, and have a good reason for selling it.
Let’s get to it!
Step One: Get Professional Help
When trying to sell your business, you’ll want to find a certified and qualified broker who is both knowledgeable and trustworthy. Professional help might include hiring an attorney, an accountant, or a valuation specialist to help you get your company in order and ready for sale.
Before you hire any professional help, however, make sure to clarify who will handle what and how their services will be paid for. This means you have to manage a deal team internally as a service provider to value and properly sell your business smoothly in California.
You’ll also want to find a broker who specializes in business sales since this type of transaction is different than a real estate sale. In addition to a broker, you’ll also want to find a lawyer.
The general rule of thumb is that when it’s time to sell the business, you need a lawyer to handle the legal part and a business broker to handle the valuation and selling the business process part.
Broker to Sell My Business
When deciding to sell your business, you will likely go through a number of questions in your mind. Here are just a handful of many other questions that comes to mind.
- What is the value of your business?
- What should be the price at which you sell it?
- How can you find a buyer?
- How can you find a buyer who is interested in buying your business?
The answers to these questions will largely depend on the experience and network of contacts of your chosen business broker.
So, choose wisely a qualified business broker to sell your business in California.
One of the key ways in which a business broker can help you sell your business is by creating an attractive deal opportunity for business buyers. Creating a profile on business marketplace websites not only helps with promoting the business for sale but also helps with the marketing process for your business confidential.
Step Two: Research Your Options
You’ll need to conduct thorough research to make sure you’re properly valuing your company.
There are many resources that can help with this process, including online valuation tools, business broker databases, and business broker associations. When researching valuation options, it’s important to consider several factors, including your company’s financial worth, comparables in your industry, and the current market value.
Start by gathering data about your company. You’ll want to know things like the company’s financial worth, its asset valuation, its revenue and expenses, and how long the business has been in operation.
Once you know these facts, you can begin to put your company in the context of your industry. This is important because it will help you determine your company’s value relative to its counterpart companies.
You’ll want to do this so you can better estimate the amount of money you’re likely to get for your business.
See also: Should I Sell My Business?
Step Three: Establish an Offer Price
Once you’ve gathered your data and have a better idea of the financial worth of your company, you’ll want to pick an offer price.
The offer price is what you’re asking for from the people who are buying your business. The offer price may not be the same as the amount you’re ultimately expecting to receive for the business.
For example, a buyer may be willing to pay you $2 million for your company, but you’re hoping to receive $3 million. The offer price is what you’re asking for.
It’s important to remember that when you decide on the offer price, you are setting a price that the buyer is likely to accept. A certified business broker can help you maximize your business value before listing your business for sale.
Contact Andrew Rogerson for a free consultation. Toll-Free (844) 414-9700
Find How Much Does Your Company is Worth
When trying to decide on an offer price, you’ll also want to find out how much your company’s worth is when asking the question: “how do I calculate the value of my business to sell in California?”
To do this, you’ll need to hire a professional broker to conduct an independent valuation. A valuation is an estimate of the value of your company and will help you decide on an offer price.
With an independent valuation in hand, you can compare the value of your company to other businesses in your industry.
This will give you an idea of how much your company is worth relative to other companies. You can then use this information to help you decide on an offer price.
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Tips to Improve Your Company Value
When trying to find ways to increase your company’s value, you’ll want to turn your attention to your company’s financial worth.
You’ll want to focus on ways to increase your revenue and profitability, both of which will help you command a higher price for your company.
Another way to increase your company’s value is by marketing your business. Quickly and cost-effectively, you can grow your customer base and increase your brand loyalty.
Doing this will likely lead to a boost in company value since it shows that you have a loyal following.
Here are some additional tactical tips to maximize your business valuation:
- Research the industry and market trends. Be aware of how fast the market is changing and be sure to factor in the dynamics of the marketplace.
- Prepare a detailed financial model. This will allow your buyer to make an informed investment decision when purchasing your business.
- Analyze the company’s financials. You will want to make sure that the company is generating a healthy amount of cash flow.
Keep in mind that your business valuation is only as good as the information that you provide it.
Make sure that you have:
- Accurate financial statements in order to provide a complete picture of your company’s performance.
- Keep track of your company’s financials for at least six months before you decide to sell. This will give you an accurate picture of your company’s performance and valuation.
- Keep in mind that your company is only worth what someone is willing to pay for it.
- Stay away from putting your company on the market unless you are certain that it is worth what you are asking.
Step Four: Market Your Business For Sale
As soon as you have your company ready for sale, you need to start marketing it (confidentially). This will give you an opportunity to tell your prospective buyers what your business offers and what it’s worth.
You can post your business on various platforms if you don’t care about confidentiality, including:
You can also post on local business listings, industry forums, and blogs. Each of these platforms will help you get the word out about your business sale.
You can also get the word out via direct mailing, e-mail campaigns, and traditional media, such as newspaper and radio ads.
However, most business owners would like to market and sell their business confidentially. This requires the professional help of a business broker in California. Email Andrew Rogerson for a quick reply to your questions (support@rogersonbusinessservices.com)
Find Qualified Buyers
While you’re marketing your company in order to find the right buyer, you need to keep in mind that selling your business is an investment. Therefore, you’ll want to screen potential buyers and ensure they have the financial means to purchase your business.
You can do this by asking a range of questions, including what their budget is and what kind of business they’re interested in buying.
See some tips to prevent a failed acquisition
Negotiating the Sale
When negotiating the sale, you need to keep in mind that you aren’t asking for a reduction in the offer price. Instead, you’re trying to negotiate a future price for the sale.
This means that you’re trying to find out how much money your buyer plans to invest and how long they plan on owning your business.
In addition, you’ll want to keep in mind that you’re not trying to get the buyer to pay you more – you’re trying to find out what they plan on paying. Once you’ve determined these factors, you can negotiate a price that is more in line with what you’d like to receive.
Finalizing and Closing the sale
When it’s time to close the sale, make sure that you follow the closing documents process. This means that you need to sign all the necessary documents and sign them in the designated spot. If you don’t, you could face consequences, including the fact that the deal could fall through.
If you are considering valuing and selling your business or medical practice within six to twelve months, give Andrew Rogerson, a certified business broker based in Sacramento, California, a Call Toll-Free at (844) 414-9700 or email him at support@rogersonbusinessservices.com services the whole state of California.
This is part of the tips for selling your business in California series ->
