Sell Your Business
You’re ready to sell your business, but you’re not quite sure where to begin. This guide is designed to help you with that.
You’re ready to sell your business, but you’re not quite sure where to begin. This guide is designed to help you with that.
If you’ve ever bought and sold stock, you might assume a similar market exists for privately held businesses. However, selling a privately held company in California is much more complicated than selling shares. This is because each privately held business is run differently. We’ve created a comprehensive document explaining every step of the selling process. We want you to know what to expect when establishing the proper price for your business, how it is done, and the many different steps involved in finally closing the sale of your business.
One final challenge to mention is that your business will have a much higher chance of selling at a reasonable price if it currently operates at the top of its game. Suppose you’re trying to navigate the sea of lease negotiation and Small Business Administration (SBA) loans. In that case, you’re likely not going to be focusing on maximizing the performance of your business. The more effort you put into the selling process, the less effort you put into making your business look appealing to a Buyer – and vice versa.
We suggest splitting the responsibility. You do what you do best: run your business for maximum profits. In return, the right business broker in California can do what they do best: attract a highly qualified Buyer who will offer you an incredible price for your business. This is where we come in.
Working independently, you’d have to wade through dozens of tire-kickers before finding a Buyer you can take seriously. We screen all your potential buyers to determine their financial qualifications and their work background. We only bring you buyers who are genuinely interested in your business and financially capable of buying it.
One of the biggest frustrations for the solo Seller is that most people who call about one business buy another. This happens because they learn more about your company and decide the other will have fewer complications or a better return. There’s little rhyme or reason to it since each Buyer considers different aspects of the business to be ‘too difficult.’
Working alone, your business may be rejected as the Buyer looks for more appealing prospects. However, working with us will make your business more attractive to a Buyer who has decided another company isn’t quite to his taste.
We sell and list so many businesses throughout California that we can match the right Buyer with the right type of business quickly and efficiently. We have a proprietary database of pre-screened, qualified buyers, so you never have to deal with a prospect who isn’t serious about or capable of buying your business.
With our established network, we can also market and advertise your business more efficiently—some professional journals require as much as a two-month lead time to place an ad!
Our Non-Disclosure Agreement (NDA) ensures that your business’s confidentiality is maintained during the selling process. We also protect your privacy and income-producing assets to maintain their value.
If you are a business owner whose business is located in California, generates at least $2 million in gross revenue annually, and is ready to sell within 6 to 12 months, click on the send free inquiry button.
By taking a thoughtful and thorough approach to commercial property sales with a business in California, you can increase your chances of a successful sale.
To start, you’ll need to create a plan for selling your business. You’ll determine how much you’d like the business to sell for and conduct a full valuation to see if your business can reasonably command that price. You’ll need to gather all your business data, including tax statements, business plans, strategies, training, and everything else that is the business’s assets. Learn more about when to sell your business.
If that valuation concludes you can’t get the price you were hoping for if you sell now, your plan will include steps to increase the value of your business before you put it up for sale.
You’ll need to recast your financial statements since your tax documents are usually prepared to show the lowest profits possible. That’s great for taxes, but it’s the worst possible strategy when convincing a buyer that your business is worth buying. Your company’s finances must be presented in a light that makes them appealing to buyers.
Finally, you’ll prepare an Executive Summary of your business and a Confidential Business Review. Only then are you prepared to seek out potential buyers.
If you don’t have a plan for finding qualified buyers, now’s the time to invent one. You’ll need to track down buyers interested in your type of business, preferably those likely to have the financial means to invest. You’ll distribute your Executive Summary to those buyers, so it needs to be very compelling since it’s the bait you’re dangling to hook your big fish.
Once a Buyer bites, you’ll need to qualify the Buyer to be sure he can afford your business. You’ll also agree to send him your company’s Confidential Business Review after the Buyer signs an NDA or Confidentiality Agreement. Make sure yours is iron-clad – or all your business secrets could disappear. See some factors to consider when deciding to sell your business.
You’ll need to determine the Buyer’s level of interest, which can be tricky since buyers often lie about their interest level while entertaining other offers. If you get a Buyer willing to move forward, it’s time to make a deal.
You’ll meet with your Buyer and give them a tour of your business. Once again, you must gauge the Buyer’s interest, particularly if you have other offers. If you reject a second Buyer because you think this one will pay a higher price, you could lose out when the first Buyer bails at the last minute.
If you’re confident, you’ll motivate the Buyer to act by offering a firm purchase. You’ll then negotiate a price and, if successful, write up an LOI or Asset Purchase Agreement to seal the deal.
Once more, you’ll need to open due diligence. If necessary, your Buyer must apply for financing and obtain lender instructions. You’ll open Escrow, start the Bulk Sale process, and, if all the paperwork is filed correctly, every i is dotted, and every t is crossed, finally sign the final documents.
By taking a thoughtful and thorough approach to commercial property sales with a business in California, you can increase your chances of a successful sale.
You’ve probably already identified a few points where you need clarification or are sure you’ll need assistance. That’s what we’re for. We’ve conducted hundreds of successful sales and purchases and know how to make the whole process go smoothly. Moreover, as you can see, performing all these steps is a full-time job. By hiring us, you’ll be able to focus on keeping your business running at the top of its game, ultimately allowing you to command a higher purchase price.
We can help you sell your profitable business throughout California, including Los Angeles County, San Diego County, Sacramento County, Solano County, Yolo County, Sutter County, Placer County, El Dorado County, Amador County, San Joaquin County, Contra Costa County, California Central Valley, Silicon Valley, and the San Francisco Bay Area.
Rogerson Business Services is a business brokerage service based in California.
If you are ready to sell your California business, let us know your questions. Whether you are selling a medical practice, an HVAC business, a landscaping business, or any other business with gross revenue greater than $2 million, contact us today to learn about our successfully selling your business program.
We’re happy to talk with you about the process of selling your business. Give us a call or contact us when you are ready.
