You Only Sell Your Business Once
Making the decision to sell your business means a dedication to time, money, and effort for the unforeseeable future. However, with some preparation and help from a Florida business broker, the blow can be lessened in all three areas.
Selling Your Business for a Profit
When selling a business, it’s only natural to expect to make profit. While it’s entirely possible, the actual amount of the profit and getting the deal to close relies heavily on a few key factors; finding a buyer, the reason for the sale, the timing of the sale, and the strength of the business’s operation and its structure. Let’s take a look at these key points:
- Finding a Buyer: With all the preparation that has be done to build your business and get it ready it for a sale, it doesn’t mean much if you can’t get serious buyers to come to the table with meaningful offers. A business broker is key to crossing this hurdle. Not only can a business broker drum up interest with buyers, he or she can qualify these people before any negotiations begin. It’s in everyone’s interest to match the ideal buyer with the ideal business.
- Reasons for the Sale: Potential buyers will have questions about the state of the finances of the businesses, and they’ll have questions about its employees, the customers, the products and/or services and the list goes on. Your business broker can assist in fielding these questions and help you prepare so that you’re ready in advance of being asked.
One of the first questions that buyers are likely to ask is, “why are you selling?” Some of the most common reasons owners decide to sell a business are:
- Partnership Disputes
- Illness and Death
- Other Ventures
- Lack of time or Resources.
Your business broker can assist you in determining what you tell potential buyers so that your privacy remains intact, but so that your negotiations are open and honest.
An important thing to remember during this process is that you as the owner want to make your business as attractive as possible to the buyer. Being prepared to pull back the curtain, tell your story and show increasing profits, consistent income figures, a strong customer base, and key components of your business, such as a major contract that spans several years, will aid in making your business look like a great buy.
- Timing of the Sale: Grooming your company through the years by watching its profits and expanding its customer base takes time and energy. But, part of running a business is also planning for the future and the expected or unexpected. If you hope to one day sell your business, it is best to prepare for the sale early. Aside from sales forecasting, setting goals for your business and running the day-to-day operations owners should plan an exit strategy for their business. When the reason for sale is one that is expected, it gives you enough time to make the business more profitable and thus more attractive to buyers. A desperate attempt to unload a business due to a sudden illness, or unplanned retirement can have detrimental results in profitability.
- The Strength of Your Business: Any buyer will want to know that they are getting a fair price for your business. A business valuation done by a certified business broker will bring credibility to the numbers and the best outcome when selling your business.
Cress V. Diglio, Florida Business Broker
Cress V. Diglio is a Certified Business Intermediary (CBI), a Merger & Acquisition Master Intermediary (M&AMI) and the past chairman of the International Business Brokers Association (IBBA).
Whether you are looking to buy a business, sell your business or merge with another business, Florida Business Broker Cress V. Diglio has the experience to assist you in all facets of the transaction. Call Cress today for complete transaction support and expertise, 888-984-4208, or visit https://floridacertifiedbusinessbroker.com.