Business Sales - Selling your business

The whole process of business sales may seem like a difficult endeavor for a small business owner but with the right connections and the right people to help you, it becomes a worthwhile business adventure.   It is also a good idea to have some sort of a map or a list of what to expect so you can prepare for whatever comes around each corner.  

·         Business Valuation – knowing the value of your business.  You need your accountant and a business/financial adviser.  The value or your net worth is not just about numbers.  Financial statements tell more than that. Financial advisers and accountants are the people you can count on to help you understand what the values attached to the liabilities, assets, cash in bank (…etc.) imply.  And more importantly what it means to a prospective buyer.  This can be your starting point to determine your selling price. 

·         Hiring a business broker.  Business sales do not necessarily require a business broker.  It is ultimately your choice but hiring one puts you at a great advantage.     This is most especially the case if you sign up with one who is experienced and is backed by a company that  give certain business sales guarantees. Although you have to be wary of business brokers who wants lengthy exclusive contracts in exchange for the guarantees.  Make sure you have come to an agreement on all fees, charges and commissions before moving forward.  And do not be lured by lower rates as it does not guarantee better outcome.

·         Preparing for the sale.  Prepping up your business may take time especially for small businesses.  It is very much like selling a house.  You will need to put everything in order and improve on the strengths and downplay on the weaknesses.  In this phase of the process, your business broker can be a valuable source of information and advice. Their business sales experience is an asset that you can tap to reach your goals.  Depending on the current state of your business, preparations may take about a year or so. 

·          Marketing and Presentation.  This is the part where you wait and hope that your labors are not in vain.  It is also the phase when all work goes to the business broker.  It involves the marketing phase of the business sales - online posting, adding onto existing seller database, cold calling, and a variety of advertising mediums.  Interested buyers are then asked to sign a confidentiality agreement and your business is the presented to the pre-screened buyers.

·         Offer and Negotiations - This is the moment you are waiting for.  If you have found an offer that you are happy with, final negotiations are made. The business sales process is then concluded with the proper documents and finally the transfer of money to the seller and ownership to the buyer.  The transaction is completed with the help of your lawyer, accountant and the business broker.