Selling A Business

Know Why Before Selling a Business

Selling a business isn’t always easy. It can be a pleasure when you’re looking forward to a well-funded retirement, but it can be hard if circumstances force you to leave your life behind and move on.

When you decide to sell a business, you must be prepared to tell the reason why, because buyers will want to know. Even if your business is healthy, buyers ask your reasons for wanting to sell. Maybe you’ve put in several years and have become jaded, are looking for a new challenge and want to cash-out. Perhaps you’ve just decided it’s time to retire and spend more time at the golf course or fishing, rather than continuing to invest long days being owned by your business. Maybe personal problems have become so overwhelming that you can no longer focus. Perhaps your health is failing and your doctor has warned that working hard and investing energy to run your business are things you should no longer do. Valid reasons exist that don’t raise red flags.

But if your business is failing and you need to get out, you can never hint that this is the reason for selling a business, because this will most likely scare off a potential buyer. You’ll need to fix problems before you begin the process of selling. A failing business will get few offers and most of those will be rock bottom.

Selling Requires Time

Selling a business is more than popping a sign in your in your widow and waiting for the buyers to appear. It can take months to sell. And while you’re in the process of selling, you still have a business to run, bills to pay, payroll and distressed employees to deal with once they learn that you’re selling.

Professionals Can Make Selling Easier

Selling a business is not something you should attempt to do solo. Enlisting the professional help of solicitors, accountants and business brokers is a smart move, because you can tap into their expertise.

These professionals have the working knowledge of what buyers are looking for and help you prepare for informational demands concerning your business’s health. You‘ll also need to invest time spent with buyers as they research your business to ascertain its value to them. Cooperation and organization can become key and influence the time it takes to sell your business as well as the asking price. As with anything else, it’s a matter of supply and demand. There are always buyers looking, but how many are looking for a business just like yours only time will tell.

Set Your Price

The price you set is rarely the price you’ll get when you sell. Buyers assess what you have and make offers based on their assessments, research and industry knowledge. Analyze your financials carefully, providing statements regarding the past six months performance, three years of Schedule Cs, a list of fixed assets and depreciations, inventory, supplies, contracts, notes and accounts payable, accounts receivable and a list intangible assets. From this information, you’ll determine your business’ net worth.

Resources To Check

Researching these sources can provide background in the sales process and give you a clearer idea of what your business is worth.

• BusinessFilter.com: Find businesses for sale or list a business for sale.
• BizBuySell: Lists thousands of businesses for sale.
• BizSale.com: This site features businesses for sale by owner.
• BizSale.co.uk: Smaller businesses for sale in the UK.
• Business Brokers Network: Business broker organization maintains a national database of individual and companies looking to buy businesses.
• Businesess.com: Provides information on businesses for sale by category.
• BizMLS: Online site listing businesses for sale.
• Net Cash Flow Offers businesses for sale in specific states.
• Business-Sale.com: Independent listing of medium to large businesses for sale in the United Kingdom.