- August 10, 2024
- Posted by: Business Brokers & Consultants
- Category: Seller Articles
Having a player mindset when selling a business can be a real game changer. The goal with this approach is to steer clear from coming across as desperate or highly motivated to sell. Instead, a seller who embraces a player mindset operates from a position of strength. It’s all about realizing you have something of value and then realistically taking steps to move forward. The best way to do that is by enlisting the help of an experienced team of Intermediaries, like us, at Business Brokers & Consultants. Working with our team provides all of the following advantages, so that you can navigate the sale process like a pro.
Keep Operations in Check
It is vital that you, as a seller, realize that your number one responsibility is to your business. You must keep normal hours of operation and activities should proceed as normal. The goal is to keep your business operating at peak levels, since any decline in sales or net profit will be a red flag to potential buyers. Inventories must be maintained, team members must stay on board, and you should continue moving forward as though there is no sale on the horizon.
Stay Realistic
Being a player doesn’t mean you should adopt a “win at all cost” attitude. Doing so, will put any deal on the fast track to failure. Instead maintain realistic expections when it comes to pricing. As your business broker, we are just as motivated as you to realize the very best price and terms for its business, but that price must support the debt and livelihood of it’s next owner. If your business is purchased by a competitor or in an M&A deal, the buyer needs a fair return on their investment. Otherwise, there is no reason for them to move forward with the acquisition.
Like any asset, your business is worth what someone is willing to pay for it. That maybe more, but an also be less than your expectation. We work hard to provide you with ROI and comparable sales advice prior to listing your business. This sets achievable goals and allows you to decide if it’s the right time to sell. If the numbers and market will not support your expectations, you can work toward a future goal that will. Sometimes understanding how the value of your business is calculated makes it well worth while spending an additional year or two growing your sales and bottom-line before selling. Having an impartial expert evaluate your business and reach a realistic price is always in your best interests.
Maintain Confidentiality
A key part of achieving a successful sale is to maintain confidentiality. Our experienced brokerage professionals always use confidentiality agreements because they protect our clients. One slip up in the realm of confidentiality can destroy a potentially great deal and even damage your business. Our Team also does the day to day work of advertising and speaking with potential buyers. We separate the serious buyers from the “tire-kickers,” so that you are free to concentrate on the day to day operations of your business.
Leverage and Plan
Being a player instead of a seller means that you act from a position of strength rather then desperation. If you are not planning ahead, circumstances may dictate the timing of your sale. Things like an unexpected illness or a spouse needing to relocate for their job, When this becomes the case, you may not actually be in a position of strength. For this reason, you’ll want to sell when you are not forced to do so for personal or financial reasons.
You’ll want to prepare your business for sale when you are not under any pressing stress to sell. Investing the time to clean up your balance sheet, address any environmental or leasing issues, assemble key documents, settle litigation and other key steps, should be done long before you wish to sell. In short, you want to be ready to sell whenever you feel like doing so. We can help you make these preparations.
In the event that life catches you off-guard, act as a buffer between you and potential buyers. This often prevents the buyer from ever needing to know the circumstances that require you to sell. After all, the business is worth what it is worth based on its cash flow. If you are required to sell due to illness or some other purely personal reason, there is no need for that information to become a negotiations.
Selling a business is a complicated process with many moving parts. Quite often, it is the structure of the deal that is more important than the price. Maintaining momentum and a, “let’s make something wonderful happen for both of us,” attitude is the key to achieving a successful sale. Nobody does this better then us.
Our assistance allows you to adopt a player’s stance, and sell from a position of strength. Forming an alliance with Business Brokers & Consultants years in advance of sale, is the best way to sell like a pro.
Copyright: Otis Florence, Business Brokers & Consultants, Inc.
This post is based on Selling Your Business Like a Pro which appeared first on Deal Studio.