THINKING ABOUT SELLING YOUR BUSINESS?
I was a business owner and thought about selling it on bad days.
Likewise, I thoroughly enjoyed owning my own business on good days. When circumstances tilted towards more bad days than good, I made the commitment to sell.
I was completely unprepared and uninformed to sell and wasn’t sure how or where to get started. I made all the basic mistakes and paid the price in terms of not getting the best price and terms. This does not have to happen to you. You have time and can reap the rewards of a well thought out plan to exit your business. Since you are reading this article, now is the time to plan your exit strategy.
There is a proven process to follow. Yes, it is a complex process but relatively easy to follow, if you are properly guided by a professional Business Intermediary. 1st, forget about getting the best price for your business. You will never be satisfied if you don’t. Because no matter what price you get, you will always imagine it is worth more. How do I know this? Easy, I went through this myself and as a professional Business Intermediary now, I have worked with many business owners. Business owners always think their business is worth more. One of my favorite comments is, look at all the things the buyer can do to make this business more valuable.
Mergers & Acquisition Process Overview
Annual statistics show 85%-90% of businesses listed for sale, never sell! Yes, selling a business is truly a complex process. But all the businesses that “never sell” have at least one thing in common, their owners did not follow the proven process. When you get ready to sell, your first decision should be to make the commitment to follow the proven process. Do not try to dictate the process. You simply do not know how. You do not have the experience or the skill set. You will be your own worst enemy. You will cost yourself a small fortune. It is not like selling a house! Repeat after me, it is not like selling a house.
A business has a range of value. The range of value varies depending upon; the current market conditions, quality of earnings, diversity of customers, management structure, volume of recurring income, quality of financial statements, type and quantity of potential buyers and many other value drivers too numerous to discuss here.
A professional Business Intermediary will be capable of providing an unbiased fair market range of value and a likely selling price. Driven by the many possible value-drivers, you will not know for sure the selling price of your business until you go through the selling process. However, It will most likely be within the range of value determined initially. How do you market your business to attract the greatest quantity of buyers.? How do you get it financed? What about the purchase contract? Should it be a stock sale or an asset sale? What form will the offers come in? How should you respond? How do you protect your confidentiality? Just a few introductory questions to consider.
I am a professional Business Intermediary. I have earned the top 3 credentials (M&AMI, CM&AP and CBI) from independent 3rd party organizations M&A Source, and IBBA. I purchased a manufacturing business and later sold the business. I understand the complex process and the associated emotions that drive buyers and sellers. And I can guide you through selling process to a successful closing.