- April 23, 2022
- Posted by: Business Brokers & Consultants
- Category: Seller Articles
Business Brokers & Consultants will help tremendously with the various details that need attention during the sales process. From start to finish, we keep our eye on the prize so that you have time and energy to focus on running your business. Meanwhile, it’s important for you to keep running things in a smooth and seamless manner. Don’t let things slide simply because you are distracted by the prospect of a sale. Instead, make sure it’s business as usual. Keep the premises in tip top condition, operating hours and inventory levels unchanged.
Then, allow us to help you with things like pricing, confidentiality, sales strategies, and exit planning.
Get Professional Advice on Pricing
You may have a “magic number” in mind of what your business is worth. Is it what you have invested in the business or the exact amount you need to retire comfortably? Unfortunately, or perhaps fortunately, neither of those figures play much of a role in its current value. It may be worth much more than you anticipate. It may be worth less. The market is the determining factor. That’s why it’s so important to get a professional valuation before you put a price on your business. If you set your price too high, it will only slow down or even halt a successful close. If your expectation is too low, you will leave money on the table.
Keep Things Confidential
Until and sometimes even after the sale is complete, you’ll want to maintain the highest standard of confidentiality. When vendors and employees speculate about a possible sale, it can be detrimental to your business. For example, fear of the unknown can lead key employees to seek employment elsewhere.
Decide On Your Strategies
Will you be willing to stay on in some capacity? In most cases, this will increase the sale price of your business. Buyers will often pay more when a seller stays on for a designated period of time because it reduces their risk. A seller who gives off a “cut and run” vibe, by comparison, always raises red flags.
Would you be willing to offer some seller financing? You don’t have to finance 100% or even the majority of the transaction. As little as 10% seller financing projects confidence in the business and the buyers, which often translates into a higher sale price.
Prepare in Advance
Start preparing to sell your business when it’s the furthest thing from your mind. Don’t wait until there are external pressures or life takes an unexpected turn that forces you to sell. Start preparing years in advance by keeping clean books and records, and organizing corporate, asset and real estate documents.
Selling a business is a full-time job. That’s why Business Brokers & Consultants dedicates 100% of its time and resources to the process. We are your local Business Brokerage advisors, with offices right here in Louisville, Kentucky. Get in touch with us today, and let us help you put a contingent plan in place for the sale of your business. Call 502-425-0995 for a free consultation. We will ensure your business is optimized for sale no matter where life take you.
Copyright: Otis Florence, Business Brokers & Consultants, Inc
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